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?"
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in this exercise we implement the method just described for interpreting internal definitions we assume that the
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john purchased a stock that has a beta of 12 a standard deviation of 13 and returned 16 this year the market s return
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