Suppose an analyst has a measured alpha of .2% with a standard error of 2%, as in
Question:
Suppose an analyst has a measured alpha of .2% with a standard error of 2%, as in our example. What is the probability that the positive alpha is due to luck of the draw and that true ability is zero?
.P-96
Step by Step Answer:
Related Book For
ISE Investments
ISBN: 9781266085963
13th International Edition
Authors: Zvi Bodie, Alex Kane, Alan Marcus
Question Posted: