In the last 12 months:

• The market has returned 6.00%

• The T-bill yielded 1.00%

• Small stocks returned 5.00%

• Large stocks returned 7.00%

• Value firms returned 2.00%

• Growth firms returned 8.00%

Matheny Management has the following risk profile:

• _MKT = 1.20

• _SMB = 2.15

• _HML = -0.20

Question #2:

What was the expected return on Matheny Management this year? (Input your answer rounded to two decimals and as a percentage; such as XX.XX%)

E(r_MM) = %

Question #3:

If the actual return was 5.00%, what was the alpha over the last 12 months? (Input your answer rounded to two decimals and as a percentage; such as XX.XX%)

= %