Mathematics
Mathematics, 12.10.2019 22:30, Wolfman2004

B.

what is the alpha of portfolio a. (negative value should be indicated by a minus sign. round your answer to 2 decimal places.)

consider the following information:

portfolio

expected return
expected return

beta

risk-free

6

%

0

market

10.2

1.0

a

8.2

1.4

a.

calculate the expected return of portfolio a with a beta of 1.4. (round your answer to 2 decimal places.)

expected return

%

b.

what is the alpha of portfolio a. (negative value should be indicated by a minus sign. round your answer to 2 decimal places.)

alpha

%

c.

if the simple capm is valid, state whether the above situation is possible?

yes

no

*** explain***

answer
Answers: 3

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B.

what is the alpha of portfolio a. (negative value should be indicated by a minus sig...

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