Samsung has a correlation with the S&P 500 of 0.8. Samsung's standard deviation is 0.25 and the
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Samsung has a correlation with the S&P 500 of 0.8. Samsung's standard deviation is 0.25 and the S&P 500 has a standard deviation of 0.22. The risk-free rate is 0.01, and the expected return on the S&P 500 is 0.05.
What is Samsung's expected return?
If you think the expected return is 12%, what is Samsung's alpha?
Related Book For
Financial Management Theory & Practice
ISBN: 9780324652178
12th Edition
Authors: Eugene BrighamMichael Ehrhardt
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