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Hello, could anyone by chance walk me thru the steps of the alphas of the two stocks using T-bill rates? Consider the following table, which
Hello, could anyone by chance walk me thru the steps of the alphas of the two stocks using T-bill rates? Consider the following table, which gives a security analyst's expected return on two stocks for two particular market returns: Market Return 75 20 Aggressive Stock 3.24 31 Defensive Stock 5.08 14 c. If the T-bill rate is 7%, and the market return is equally likely to be 7% or 20%, what are the alphas of the two stocks? (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.) Alpha A Alpha D 16.71% 16.71%
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