What is the stock abnormal return

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Reference no: EM131590420

You consider buying a share of stock at a price of $31. The stock is expected to pay a dividend of $2.58 next year, and your advisory service tells you that you can expect to sell the stock in 1 year for $34. The stock's beta is 0.8, rf is 5%, and E[rm] = 15%. What is the stock's abnormal return?

Reference no: EM131590420

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