What is the stocks abnormal return

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A friend suggests that you buy a share of stock at a price of $25. The stock is expected to pay a dividend fo $1.50 next year and your advisory service tells you that you can expect to sell the stock in one year for $28. The stock's beta is 1.1, rf is 6%, and E[rm] is 16%. What is the stock's abnormal return?

Reference no: EM131303398

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