Stock Y has an expected excess return of 1 0 % and its beta is 1 .

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Question:

Stock Y has an expected excess return of

10 %

and its beta is

1.25 .

The Market portfolio expected return is

8 %

and the risk

-

free rate is

2 % .

What is the alpha of Stock Y

?

Posted Date: May 13, 2024 02:51 AM

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Stock Y has an expected excess return of 1 0 % and its beta is 1 .

Question:

Expert Answer:

To calculate the alpha of Stock Y we need to use the Capital Asset Pric... View the full answer

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