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)+8.0%
C)-1.7%
D)+2.5%

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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)+8.0%
C)-1.7%
D)+2.5%

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