Question
We know the following two premiums: E(rM) - E(rA) = 0:4 and E(rA) -rf = 0.1. (a) Calculate beta A. (b) If security B has
We know the following two premiums: E(rM) - E(rA) = 0:4 and E(rA) -rf = 0.1.
(a) Calculate beta A.
(b) If security B has beta B = 1 and E(rB)- rf = 0.5. What is Alpha B?
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Financial Accounting and Reporting a Global Perspective
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
4th edition
978-1408066621, 1408066629, 1408076861, 978-1408076866
