"John purchased a stock that has a beta of 1.2, a standard deviation of 13%
Question # 00387312
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Updated on: 09/15/2016 09:16 AM Due on: 09/15/2016
"John purchased a stock that has a beta of 1.2, a standard deviation of 13%, and returned 16% this year. The market s return was 12% with a standard deviation of 14%. If the risk free rate of return is 3%, what is the alpha of John s stock?"
| -2.2 |
| -1.4 |
| 1.4. |
| 2.2 |
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Rating:
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Solution: "John purchased a stock that has a beta of 1.2, a standard deviation of 13%