Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

We expect a return on the market of 13.300% and a risk free rate of 3.100%. Using data over the past five years, we measure

We expect a return on the market of 13.300% and a risk free rate of 3.100%. Using data over the past five years, we measure the rate of return on Galifre Educational as 11.688% with a beta of 1.19. Therefore we calculate Jensen's Alpha on Galifre Educational as

: %

and the abnormal return as

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial statements

Authors: Stephen Barrad

5th Edition

978-007802531, 9780324186383, 032418638X

More Books

Students also viewed these Finance questions