Question: Based on below data, did the alpha and beta estimates from 2019 provide a reasonable prediction of stock returns in 2020 for the two stocks

  1. Based on below data, did the alpha and beta estimates from 2019 provide a reasonable prediction of stock returns in 2020 for the two stocks you are analysing? Why or why not?
2019 2020
Alpha Beta Alpha Beta
Company A 0.000563 0.857381 0.002527 0.403847
Company B -0.00032 0.879847 -0.00814 1.150153

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