Analysis of past monthly movements in IBM's stock price produces the following estimates: α = 2. 5% and β = 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

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The Answer of Analysis of past monthly movements in IBM's stock price produces the following estimates: α = 2. 5% and β = 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

Analysis of Past Monthly Movements in IBM's Stock Price Produces