Answer the following sub questions

a. What does alpha measure? What alpha would you like to see on your investment?

Common advice on Wall Street is Keep your alpha high and your beta low why? Explain in your own words using an example

b. In recent years, it has been common for companies to experience significant stock price changes in reaction to announcements of massive layoffs. Critics charge that such events encourage companies to fire long time employees and that Wall Street is cheering them on. Do you agree or disagree? Discuss with an example.