Explain why you might expect stocks to have nonzero alphas if the market proxy portfolio is not

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Explain why you might expect stocks to have nonzero alphas if the market proxy portfolio is not highly correlated with the true market portfolio, even if the true market portfolio is efficient.

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Corporate Finance

ISBN: 9780137845071

6th Edition

Authors: Jonathan Berk, Peter DeMarzo

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Question Posted: Jun 12, 2024 01:13 AM

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Explain why you might expect stocks to have nonzero alphas if the market proxy portfolio is not highly correlated with the true market portfolio, even if the true market portfolio is efficient?
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Explain why you might expect stocks to have nonzero alphas if the market proxy portfolio is not

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Corporate Finance

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