Answered step by step
Verified Expert Solution
Link Copied!

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

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_2

Step: 3

blur-text-image_3

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

Fundamentals Of Investing

Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk

13th Edition

978-0134083308, 013408330X

More Books

Students also viewed these Finance questions

Question

What is regret ? (p. 2 49)

Answered: 1 week ago