Question: I dont know how to calculate this question please help me Assume that the economy has three types of people.15% are fad followers, 75% are
I dont know how to calculate this question please help me
Assume that the economy has three types of people.15% are fad followers, 75% are passive investors, and 10% are informed traders.The portfolio consisting of all informed traders has a beta of 1.3 and an alpha of 2.43%.The market has an expected return of 12% and the risk-free rate is4%.
What is the alpha for the fad followers?
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