At the beginning of the year, a fund's ex ante expected return is 13.4%, and the...
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At the beginning of the year, a fund's ex ante expected return is 13.4%, and the expected return on the market is 11.9%. The risk-free rate is 4.2%. At the end of the year, the fund's realized return is 12.8%, and the market return is 11.8%. The fund's beta is 0.5. a. What is the ex ante alpha? Number % Round your answer to two decimals b. What is the ex post alpha? Number % Round your answer to two decimals At the beginning of the year, a fund's ex ante expected return is 13.4%, and the expected return on the market is 11.9%. The risk-free rate is 4.2%. At the end of the year, the fund's realized return is 12.8%, and the market return is 11.8%. The fund's beta is 0.5. a. What is the ex ante alpha? Number % Round your answer to two decimals b. What is the ex post alpha? Number % Round your answer to two decimals
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a To calculate the ex ante alpha we use the formula Ex Ante Alpha Ex Ante ... View the full answer
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