You buy one share of Matt’s Amazing Teaching Technology Co. (ticker = MATT) on January 1^st, 2018 for $20 per share. On January 1^st, 2019 you sell your share for $24 per share. MATT stock has a beta of 1.6 and its standard deviation is 34%. The risk-free rate is 3%, and the market return was 12%. What was the alpha of this position?

Answer rating: 100% (QA)

To calculate the alpha of a position we need to use the Capital Asset Pricing Model CAPM ... View the full answer