Question
1. A financial analyst calculates a Merrill-Lynch adjusted beta of 0.60. The sample or historic beta must have been _____. A. 0.40 B. 0.44 C.
1. A financial analyst calculates a Merrill-Lynch adjusted beta of 0.60. The sample or historic beta must have been _____.
A. 0.40
B. 0.44
C. 1.30
D. 0.6667
2. A portfolio has a beta = 1.5. Last year the portfolio had a return of 13%. Last year the market return was 11% and the risk-free rate of return was 2%.
What was the "alpha" of the portfolio?
| A. | -0.5% | |
| B. | -2% | |
| C. | +2.5% | |
| D. | -2.5% |
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Management Control Systems
Authors: Frank G.H. Hartmann Professor, Kalle Kraus, Göran Nilsson, Robert N. Anthony, Vijay Govindarajan
2nd Edition
1526848317, 978-1526848314
