Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A portfolio has a beta of 1.15 and an annual expected return of 12.75%. The riskless rate is 1.29% and the annual expected return of

A portfolio has a beta of 1.15 and an annual expected return of 12.75%. The riskless rate is 1.29% and the annual expected return of the market is 9.82% What is the alpha of the portfolio.


Step by Step Solution

There are 3 Steps involved in it

Step: 1

To calculate the alpha of a portfolio we need to use the following formula Alpha Portfolios ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Applied Corporate Finance

Authors: Aswath Damodaran

4th edition

978-1-118-9185, 9781118918562, 1118808932, 1118918568, 978-1118808931

More Books

Students also viewed these Finance questions

Question

=+a) What is the center line for the R chart?

Answered: 1 week ago