Question
At the beginning of the year, a fund's ex ante expected return is 13.4%, and the expected return on the market is 11.9%. The
At the beginning of the year, a fund's ex ante expected return is 13.4%, and the expected return on the market is 11.9%. The risk-free rate is 4.2%. At the end of the year, the fund's realized return is 12.8%, and the market return is 11.8%. The fund's beta is 0.5. a. What is the ex ante alpha? Number % Round your answer to two decimals b. What is the ex post alpha? Number % Round your answer to two decimals
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Investments Analysis and Management
Authors: Charles P. Jones
12th edition
978-1118475904, 1118475909, 1118363299, 978-1118363294
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