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Based on below data, did the alpha and beta estimates from 2019 provide a reasonable prediction of stock returns in 2020 for the two stocks
- Based on below data, did the alpha and beta estimates from 2019 provide a reasonable prediction of stock returns in 2020 for the two stocks you are analysing? Why or why not?
2019 | 2020 | |||
Alpha | Beta | Alpha | Beta | |
Company A | 0.000563 | 0.857381 | 0.002527 | 0.403847 |
Company B | -0.00032 | 0.879847 | -0.00814 | 1.150153 |
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