Multiple Choice
Using the single index model, what is the alpha of a stock with beta of 1.3, a market return of 14%, risk free rate of 4% and the actual return of the stock is 14%?
A) −1.37%
B) 0.75%
C) 1.80%
D) 2.11%
E) −3.00%
Correct Answer:
Verified
Correct Answer:
Verified
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