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 = 0.10% + 1.1rM If the market index subsequently rises by 8% and Ford’s stock price rises by 7%, what is the abnormal change in Ford’s stock price?

Abnormal change in Ford's stock = -1.80%

Explanation:

Abnormal change in return Ford's stock change =Increase in Ford's Stock change -Beta*Change in Ford's Stock Price

=7% -1.1*8% =-1.80%

due to the changes the federal reserve is making the unused reserves will impact the economy by them facing inflation. inflation is definfed as the increase in pricing of a good or service but the decline of the value of money used for purchasing those items. when the economy has a high inflation rate, they are subject to money loss and hurt on the economy.

answer; commerce clearing house;