What is the abnormal change in ford stock price

Assignment Help Finance Basics
Reference no: EM13294236

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 = .10% + 1.1rM If the market index subsequently rises by 7.3% and Ford's stock price rises by 7%, what is the abnormal change in Ford's stock price?

Reference no: EM13294236

Questions Cloud

Describe the importance of variable naming and conventions : Describe the importance of variable naming and conventions. What makes this so important when working with a team to develop a game or application? What do you think are the implications of not naming, or not naming correctly, variables in the ..
Explain how to prepare copper carbonate by a precipitation : Suppose that you wished to prepare copper(II) carbonate by a precipitation reaction involving Cu2+ and CO3^2-. Select all of the pairs of reactants that could be used as solutes
Determine how high is the image : You place a 3.63-mm-high diamond on the axis of and 12.7 cm from a lens with focal length -5.15 cm. How high is the image
Community nursing intervention : Propose one community nursing intervention that would address one or more of the major direct or indirect factors the problem. Your intervention needs to be specific
What is the abnormal change in ford stock price : which are believed to be stable over time: rF = .10% + 1.1rM If the market index subsequently rises by 7.3% and Ford's stock price rises by 7%, what is the abnormal change in Ford's stock price?
How excess air for combustion is calculated : Excess air for combustion is calculated using the assumption of complete reaction whether or not a reaction takes place. For the typical combustion process the products are CO2 gas and H2O vapor. In combustion processes, since any oxygen in the coal ..
Differences between the plan and reality : Why don’t information systems projects work out as planned? What causes the differences between the plan and reality? Why is it important to document change requests? What happens if a development team doesn’t? When a project is late, do you think th..
The design pattern capability is built into the ide : Review the Design Patterns you have learned this module (CRC Cards and Sun Blue Print Designs.) Use the Internet to find at least two other design patterns. What are the advantages and disadvantages of each? What happens when the design patter..
Explain how many grams of mg(oh)2 will not have dissolved : Suppose 8.26 g of solid Mg(OH)2 is added to 36.1 mL of 0.488 M H2SO4 solution. What will the concentration of Mg2+ be when all of the acid has been neutralized. How many grams of Mg(OH)2 will not have dissolved.

Reviews

Write a Review

Finance Basics Questions & Answers

  Analyzing the use of databases in a large bank

I need help analyzing the use of databases in a large bank or collection call center. I need examples and descriptions of known database applications that are used

  Calculate due tax amount

A resident of the US has a base income of $23,000 after adjustments for deductions. New legislation by Congress would tax this income at a rate of 11%.

  What is the value of western mountain pizza to pizza place

The risk free rate is 6% and the market risk premium os 4.5%. what is the value of Western Mountain Pizza to Pizza Place?

  Information about total interest

Bank of America recently offered 48 month loans at 5.7% compounded monthly to applicants with a good credit rating. Find out the total interest you will pay for this loan?

  What is your expected rate of return on this stock

There is a 5 percent probability of a boom and a 75 percent chance of a normal economy. What is your expected rate of return on this stock?

  Statement of cash flows and tvm

Please help me solve the following problems related to the statement of cash flows-Tiki Timber Corp invested $6,000,000 in new equipment which will yield sales totaling $1,750,000 for years 1 through 3 and $2,400,000 for years 4 through 6. The annu..

  How much insurance should they have carried to meet

How much insurance should they have carried to meet the coinsurance obligation?

  What is that companys cost of common stock

The firm just paid a $2.00 common dividend in the past year, and that dividend is expected to increase by 5 percent per year forever. What is that company's cost of common stock?

  What bid price per carton should you submit

Assume that your tax rate is 34% and you require a 10% return on your investment. What bid price per carton should you submit?

  How much is the target cost per unit

The company requires a profit of 0.19 of selling price. How much is the target cost per unit?

  What is the total amount of fees to be paid in a year

Beckheart is seeking financing for its inventory. Safe-proof Warehouses offers space in their facility for Beckheart's inventory. They offer loans with a 15 percent APR equal to 60 percent of the inventory.

  What is the length of the annuity time period

You are considering an annuity which costs $160,000 today. The annuity pays $18,126 a year at an annual interest rate of 7.50 percent. What is the length of the annuity time period?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd