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Question 17 1 pts You are wondering if you should add Target's stock to your portfolio. For that purpose you ran a regression of the
Question 17 1 pts You are wondering if you should add Target's stock to your portfolio. For that purpose you ran a regression of the excess return on Target's stock on the excess return on the market. You found the following: alpha =-0.037, beta =2.987,R^(^^)2=80%. If, in the timeframe of your regression, the average exces return on Target's stock was 0.164 , what must have been the average excess return on the market in that same period? Answer to 3 decimal places
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