Two portfolio managers use different procedures to estimate alpha. One uses a singleindex model regression, the other

Question:

Two portfolio managers use different procedures to estimate alpha. One uses a singleindex model regression, the other the Fama-French model. Other things equal, would you prefer the portfolio with the larger alpha based on the index model or the FF model?

Intermediate LO.1

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Essentials Of Investments

ISBN: 9780697789945

8th Edition

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

Question Posted: