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Question
Analysis of past monthly movements in IBM's stock price produces the following estimates: a = 2. 5% and b = 1. 6. If the market index subsequently rises by 12% in one month and IBM's stock price increases by 20%, what is the abnormal change in IBM's stock price?
A. +1.7%
B. +8%
C. -1.7%
D. None of the above
Answer
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Related questions
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