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Question 25 it point) Suppose there are three types of investors Passive investors (75% of the entire Investor population: Fad followers who are 20% of

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Question 25 it point) Suppose there are three types of investors Passive investors (75% of the entire Investor population: Fad followers who are 20% of the population and informed traders who are 5% of the population. Assume that there is a portfolio that consists only informed traders, which has a beta of 14 and an expected return of 16%. The market has an expected return of 10% and the risk free rate is 4%. What is the alpha for the informed investors A)-2.4% B)-0.9% C 0.0% D)-3.6% E) None of the above 25 MacBook Pro 00. 0 6 9 7 4 5 O R T Y H G F K J 00 Z M

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