Question
Consider the single-index model. The alpha of stock is 0%. The return on market index is 10%. The risk-free rate of return 5%. The stock
Consider the single-index model. The alpha of stock is 0%. The return on market index is 10%. The risk-free rate of return 5%. The stock earns a return that exceeds the risk-free rate by 5. The beta is calculated as:
0.67
0.75
1.0
1.33
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Introductory Econometrics For Finance
Authors: Chris Brooks
3rd Edition
1107661455, 9781107661455
