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

  What is the incremental cash flow related to working capital

Enter negative sign in front of the number or put parentheses around the number. The answer to this question is negative not positive.

  Which one of the following bonds is the least suitable

Mary is a retired widow who is financially dependent upon the interest income produced by her bond portfolio. Which one of the following bonds is the least suitable for her to own?

  Differences between product and period costs

Your company, a medium-sized manufacturer of widgets, has just held the annual end of year "State of the Business" meeting for all employees.

  What is the aftertax salvage value from this sale

The old machines are being sold for $140,000 to a foreign firm for use in its production facility in South America. What is the aftertax salvage value from this sale if the tax rate is 35 percent?

  Estimate the market value of one share of charleston stock

A similar firm which is publicly traded had a price/earnings ratio of 5.0. Using only the information given, estimate the market value of one share of Charleston's stock.

  What is the preferred stock yield-to-maturity

The stock, which pays a quarterly dividend of $1.10, will be retired by the firm in 20 years. If the preferred stock is currently selling for $68.00, what is the preferred stock's yield-to-maturity?

  What will be the system money supply

Assume a financial system has a monetary base of $25 million. The required reserves ratio is 10%, and there are no leakages in the system.

  Calculating future value of investment

Jane's goal is to have an investment grow to $100000 in 20 years. Her strategy is to make lump-sum contributions in years 0, 5, 10, and 15. That is, in Year 0, she will contribute $X, in year 5 she will contribute $x, etc. where $X is the same at ..

  Determine earnings per share and share return

Assume that River Cruises, which currently is all-equity-financed, issues $250,000 of debt and uses the proceeds to repurchase 16,667 shares. Suppose that the company pays no taxes and that debt finance has no impact on its market value.

  How a decline in capital intensity would affect the afn

Explain how a decline in capital intensity would affect the AFN, other things held constant.

  What is the bond worth today

Wilson owns a bond with a coupon of 6%. He bought it when the current yield was 7%. The current yield is now 5%. How much did he pay for the bond? What is the bond worth today? If he sold it what would his gain or loss be?

  Calculate the present value of the salary

Suppose today is August 1, 2006. Charles is thirty years old and has a Bachelor of Science degree in computer science. He is currently employed as a Tier 1 field service representative for a telephone corporation and earns $38,000 a year that he anti..

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