Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Your investment portfolio had an annualized standard deviation of 26%, a beta of 1.9, and an actual annual return of 0%. The average annual risk-free

image text in transcribed
Your investment portfolio had an annualized standard deviation of 26%, a beta of 1.9, and an actual annual return of 0%. The average annual risk-free rate in the economy during that period was 2.5%. The market risk premium was 7.2%. What was your portfolio's Alpha? Write your answer out to three decimals - for example, write 3.2% as .032

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

Port Infrastructure Finance

Authors: Hilde Meersman, Eddy Van De Voorde, Thierry Vanelslander

1st Edition

0415720060, 978-0415720069

More Books

Students also viewed these Finance questions

Question

7. Understand the challenges of multilingualism.

Answered: 1 week ago