Say you estimate the security characteristic line for Tesla and find its beta with respect to the SP500 to be 1.2 and its alpha to be zero. On average, on a day when SP500 is up 2% above the risk-free rate, what will be Tesla's excess return (i.e., its return above the risk-free rate)?

Answer rating: 100% (QA)

To calculate Teslas excess return on a day when the SP ... View the full answer