Question 29: The table shows that the annual alpha on the basic earnings momentum strategy was approximately _______

a. 9%

b. 11.7%

c. 15.84%

d. 18%

e. None of the above

the correct choice is c. 15.84% can you please tell me how to arrive to this answer

molel'lmanM (h) both lb) and (d) (i) none of the above Questions 29 and 30 refer to the table below. The table was constructed as follows: Using quarterly earnings announcements from January 1995 until December 2004, each month rms were sorted twice. First, they were sorted into 5 groups based on the total number of companies announcing earnings on the day the rms most recently announce. Second, they were sorted into 2 groups based on the degree to which these announced earnings were surprising. Within each of these 5 x 2 = 10 groups stocks were equally weighted into portfolios. The table shows the average market adjusted return (alpha) over the subsequent month on each portfolio. Negative Positive earnings earnings surprise (96) surprise (96} Number of announcement quintiles 5 (most announcements)