An index model regression applied to past monthly returns

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Reference no: EM131496258

An index model regression applied to past monthly returns in Ford’s stock price produces the following estimates, which are believed to be stable over time: rF = 0.1% + 1.1rM If the market index subsequently rises by 9.1% and Ford’s stock price rises by 9%, what is the abnormal change in Ford’s stock price?

(Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Abnormal return _______% ?

Reference no: EM131496258

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