Answer questions A through D

Save Homework: M4: Chapter 13 Homework Score: 0 of 1 pt P13-16 (similar to) 5 of 5 (3 complete) HW Score: 60%, 3 of 5 pts Question Help Assume the economy consists of three types of people, 52% are fad followers, 45% are passive investors who have read this book and so hold the market portfolio and 3% are informed traders. The portfolio consisting of all the informed traders has a beta of 1.58 and an expected return of 15%. The market expected return is 10% The risk-free rate is 4%. a. What alpha do the informed traders make? b. What is the alpha of the passive investors? c. What is the expected return of the fad followers? d. What alpha do the fad followers make? a. What alpha do the informed traders make? The alpha that the informed traders make is % (Round to two decimal places.) Enter your answer in the answer box and then click Check Answer 3 parts remaining Clear All Contact Us Save Homework: M4: Chapter 13 Homework Score: 0 of 1 pt P13-16 (similar to) 5 of 5 (3 complete) HW Score: 60%, 3 of 5 pts Question Help Assume the economy consists of three types of people, 52% are fad followers, 45% are passive investors who have read this book and so hold the market portfolio and 3% are informed traders. The portfolio consisting of all the informed traders has a beta of 1.58 and an expected return of 15%. The market expected return is 10% The risk-free rate is 4%. a. What alpha do the informed traders make? b. What is the alpha of the passive investors? c. What is the expected return of the fad followers? d. What alpha do the fad followers make? a. What alpha do the informed traders make? The alpha that the informed traders make is % (Round to two decimal places.) Enter your answer in the answer box and then click Check Answer 3 parts remaining Clear All Contact Us