John purchased a stock that has a beta of 12 a standard


"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

Solution Preview :

Prepared by a verified Expert
Finance Basics: John purchased a stock that has a beta of 12 a standard
Reference No:- TGS01387633

Now Priced at $10 (50% Discount)

Recommended (91%)

Rated (4.3/5)