Question
A stock has a return of 12.9 percent and a beta of 1.27. The market return is 12.6 percent and the risk-free rate is 4.13
A stock has a return of 12.9 percent and a beta of 1.27. The market return is 12.6 percent and the risk-free rate is 4.13 percent. What's the Jensen alpha of this stock?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the Jensen alpha of a stock you can use the following formula Jensen Alpha S...
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Step: 2
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International Financial Reporting and Analysis
Authors: David Alexander, Anne Britton, Ann Jorissen
5th edition
978-1408032282, 1408032287, 978-1408075012
