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What do you notice about the alphas and betas calculated using various methods? Are your stocks alphas different from zero? Do they indicate inferior performance,
What do you notice about the alphas and betas calculated using various methods? Are your stocks alphas different from zero? Do they indicate inferior performance, superior performance, or normal performance? Using the alpha and beta you calculated for stock 4 (whatever is the 4th stock you chose), along with the average excess return on the S&P index, what is your prediction of the average excess return for stock 4?
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