Question
A junior analyst, Athena estimates that HFW stock, will yield 11.8%. The company has a Beta of 1.1, meanwhile, the risk-free rate is 1.0% and
A junior analyst, Athena estimates that HFW stock, will yield 11.8%.
The company has a Beta of 1.1, meanwhile, the risk-free rate is 1.0% and the expected return on the market is 7.5%.
Estimate the alpha if the Athena's estimate is accurate.
Round your answer to the nearest basis point (0.0001).
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Governing Global Finance
Authors: Michele Fratianni, Paolo Savona
1st Edition
1138742147, 978-1138742147
