You calculated McDonald's intrinsic value to be $170.90. The stock current price is $160 and you that MCD will be correctly priced in 2 months. If the annual required rate of return on MCD is 13.5%, and you are correct, what will be the alpha of this trade?

Answer rating: 100% (QA)

To calculate the alpha of this trade we first need to calculate the expected return on MCD based on ... View the full answer