Multiple Choice
Consider an asset that has a beta of 1.5. The return on the risk-free asset is 6.5% and the expected return on the stock index is 15%. The estimated return on the asset is 20%. Calculate the alpha for the asset.
A) 19.25%
B) 0.75%
C) -0.75%
D) 9.75%
E) 9.0%
Correct Answer:
Verified
Correct Answer:
Verified
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