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Following is information about two stocks that Stephan gathered from reliable Internet sources. Stephan also determined that the risk-free rate of return is 3 percent
Following is information about two stocks that Stephan gathered from reliable Internet sources. Stephan also determined that the risk-free rate of return is 3 percent and the market return is forecasted to be 9 percent. The "Forecasted Rates represents the rates Stephan thinks he will actually eam on the stocks Stock X Forecasted Rates 15.0% 9.0 Standard Deviation 18% 21 Beta 1.80 0.75 What is Stock Y's alpha
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