You anticipate that a single stock, A, will return 15.50% next year. It has a variance of
Fantastic news! We've Found the answer you've been seeking!
Question:
You anticipate that a single stock, A, will return 15.50% next year. It has a variance of 0.019 and a covariance with the market portfolio given by 0.006.
The market portfolio has an expected return of 10.10%, a market risk premium 4.20% and a variance of 0.014.
What is stock A's CAPM alpha?
Expert Answer:
Posted Date:
