Question
A famous Wall Street bank reported that the expected market return is 20%; the risk-free rate is 5%; and DGT stocks beta is 1.40. The
A famous Wall Street bank reported that the expected market return is 20%; the risk-free rate is 5%; and DGT stocks beta is 1.40. The portfolio manager sees DGT trading on the screen with a return of 25% return. Please mark the CORRECT statement:
| a. | DGTs alpha is -1.00% | |
| b. | DGTs alpha is +1.00% | |
| c. | DGT is cheap | |
| d. | DGT is fairly priced |
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Banking And Finance
Authors: Brian Duignan
1st Edition
1615308946, 978-1615308941
