Explain alpha as a measure of performance.
Answer to relevant QuestionsMany people think of risk as the danger of losing money. Is this the same way that risk is defined in finance? Explain why conservative investors who tend to buy short-term assets differ from short-term traders. Fastchip is a small technology company with a beta of 1.5 and a market capitalization of $200 million. Currently, long-term government securities are yielding 5.0 percent, intermediate governments are yielding 4.0 percent, ...What are the criticisms and a defense of the Dow Jones Industrial Average? A firm that evaluates portfolios uses the Sharpe approach to measuring performance. How would it rank the following three portfolios? (Round to three places to the right of the decimal point.)
Post your question