The expected return of stock EA is 25.75% if the expected return of the market portfolio is 22%. When the expected return of the market portfolio is 10%, the expected return of the stock EA is 10.75%. If the risk-free rate is 3%, and the market return is equally likely to be 22% or 10%, what is the alpha of stock EA? Do not round intermediate calculations.

 

Answer rating: 100% (QA)

Heres how to calculate the alpha of stock EA 1 Calculate the beta of stock EA We can use the followi... View the full answer