Question
15. Money managers are often times evaluated by their fund's alpha. The definition of alpha is: A. (The mean return of a portfolio minus the
15. Money managers are often times evaluated by their fund's alpha. The definition of alpha is:
A. (The mean return of a portfolio minus the risk free rate)/the standard deviation.
B. (The slope of the yield spread)/(the default spread)*(the mean of the portfolio).
C. The intercept in a regression of the manager's portfolio returns on various factor risk premiums.
D. The fund's market beta.
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International Financial Reporting Standards An Introduction
Authors: Belverd Needles, Marian Powers
2nd edition
053847680X, 978-1111793234, 1111793239, 978-0538476805
