Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Compute the alpha of an equity relative to your portfolio. Should you add this asset to your portfolio? I know how to do part one:
Compute the alpha of an equity relative to your portfolio. Should you add this asset to your portfolio?
I know how to do part one: My alpha was 0.0097. My confidence intervals is lower 95, 0.008 and upper 95, 0.02. And my beta is .7.
I dont know what it means to answer part two of the question.
Please help! Thank you (:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started