Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ex post & ante alphas At the beginning of the year, a fund's ex ante expected return is 1 3 . 4 % , and

Ex post & ante alphas
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?
%
Round your answer to two decimals
b. What is the ex post alpha?
%
Round your answer to two decimals
image text in transcribed

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

Step: 3

blur-text-image

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

Multinational Business Finance

Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett

16th Edition

013749601X, 978-0137496013

More Books

Students also viewed these Finance questions