19. Suppose that based on the analysts past record, you estimate that the relationship between forecast and

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19. Suppose that based on the analyst’s past record, you estimate that the relationship between forecast and actual alpha is:

Actual abnormal return .3Forecast of alpha Use the alphas from Problem 17. How much is expected performance affected by recognizing the imprecision of alpha forecasts?

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Investments

ISBN: 9780077261450

8th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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Question Posted: Jul 24, 2024 04:00 AM

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19. Suppose that based on the analysts past record, you estimate that the relationship between forecast and

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Investments

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