Suppose that on the basis of the analysts past record, you estimate that the relationship between forecast

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

Actual abnormal return 5 .3 3 Forecast 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: 9780073530703

9th Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

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Question Posted: Jul 31, 2024 04:01 AM

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Suppose that on the basis of the analysts past record, you estimate that the relationship between forecast

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Investments

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