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Need help with Finance Question, read it carefully and check your answer please. Thank you. Assume that you run a regression on the raw returns
Need help with Finance Question, read it carefully and check your answer please. Thank you.
Assume that you run a regression on the raw returns of the stock of Company J against the raw returns of the market and find an intercept of 1.324 percent and a beta of 1.75. If the risk-free rate is 2.64 percent, and using the concept of Jensen's Alpha, then determine by how much this stock beat the market. Answer in decimal format, to 4 decimal places. For example, if you answer is 3.33%, enter "O.0333
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