Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 13, 2024

You are given the following information: stock A stock B variance 6% 7% return 19% 2% beta -1.00 2.00 tracking error 2% 3% The risk-free

You are given the following information:

	stock A	stock B
variance	6%	7%
return	19%	2%
beta	-1.00	2.00
tracking error	2%	3%

The risk-free rate is 2%. The return on the market portfolio is 8%.

Compute the alpha of stock A.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

Step: 3

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

Cost Benefit Analysis

Authors: Harry F. Campbell, Richard P.C. Brown

3rd Edition

1032320753, 9781032320755

More Books

Students also viewed these Finance questions

Question

★★★★★

The directors of Yorkshire Autopoints are considering the acquisition of an automatic car-washing installation. The initial cost and setting-up expenses will amount to about 140,000. Its estimated...

Answered: 1 week ago

Question

★★★★★

JavaScript Jobs - - - - - - - - - - - - - - - - - - - - Scott Ashley has posted a few messages about JavaScript jobs. Find all these messages using subquery and show only the first 7 0 characters of...

Answered: 1 week ago

Question

★★★★★

What are the assumptions required of a multiple regression model?

Answered: 1 week ago

Question

★★★★★

For each of the following transactions of Dennen, Inc., for the month of January 2015, indicate the accounts, amounts, and direction of the effects on the accounting equation. A sample is provided....

Answered: 1 week ago

Question

★★★★★

i am having trouble doing this question kindly help me. HE manufactures electronic subcomponents that be sold at the end of Process #1 or processed further, in Process #2, and then sold. Currently,...

Answered: 1 week ago

Question

★★★★★

Define utility and disutility with the help of examples.

Answered: 1 week ago

Question

★★★★★

The following information pertains to Ping Company for 2011. Ending inventory consisted of 30 units. Ping sold 210 units at $\$ 50$ each. All purchases and sales were made with cash. Required a....

Answered: 1 week ago

Question

★★★★★

The following is partial information for Xavier Companys most recent year of operation. Xavier manufactures childrens shoes and categorizes its operations into two divisions, Girls and Boys....

Answered: 1 week ago

Question

★★★★★

Use Eq. (15.10) to prove that $J_{1}=L_{23}, J_{2}=L_{31}$, and $J_{3}=L_{12}$. Data from Eq. 15.10 1 Ji J = - Eijk Ljk K = Loi,

Answered: 1 week ago

Question

★★★★★

Draw a timeline diagram for the sliding window algorithm with SWS = RWS = 3 frames for the following two situations. Use a timeout interval of about 2 RTT. (a) Frame 4 is lost. (b) Frames 46 are...

Answered: 1 week ago

Question

★★★★★

(a) Draw an example internetwork where the BIDIR-PIM route from a sources router to a group members router is longer than the PIM-SM source-specific route. (b) Draw an example where they are the same.

Answered: 1 week ago

Question

★★★★★

Early in August an undergraduate college discovers that it can accommodate a few extra students. Enrolling those additional students would provide a substantial increase in revenue without increasing...

Answered: 1 week ago

Question

★★★★★

Shirley Ferguson, an insurance broker, believes that for a particular contact the probability of making a sale is 0.4. If the random variable X is defined to take the value 1 if a sale is made and 0...

Answered: 1 week ago

Question

★★★★★

4.28 A factory manager is considering whether to replace a temperamental machine. A review of past records indicates the following probability distribution for the number of breakdowns of this...

Answered: 1 week ago

Previous Question Next Question