Explain why it is only possible to measure alpha for a


1. Explain why it is only possible to measure alpha for a diversified portfolio and not for an individual stock.

2. A certain project has an Average Accounting Return of .75 and incomes of 10,000, 50,000 and 30,000. What is the amount of the initial investment?

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Financial Management: Explain why it is only possible to measure alpha for a
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