Pickles Dillhoefer owns a portfolio that during the past five years produced a 16 8 annual return During that time the portfolio produced a 1 10 beta the risk free return and market return averaged 7 4 and 15 2 per year, respectively What was the ex post alpha on Pickles 's portfolio during this ti...

Based on the ex post SML the ris ...

Pickles Dillhoefer owns a portfolio that during the past five years produced a 16.8% annual return. During

Question:

Pickles Dillhoefer owns a that during the past five years produced a 16.8% annual return. During that time the produced a 1.10 beta; the risk-free return and market return averaged 7.4% and 15.2% per year, respectively. What was the ex post alpha on Pickles's during this time period? Draw the ex post SML and the position of Pickles's Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...