Security a has an expected rate of return of 1550 and a


Security A has an expected rate of return of 15.50% and a beta of 2.15.The risk-free rate is 2.25% and the market risk premium is 6.75%. What is the alpha of security A? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.

Solution Preview :

Prepared by a verified Expert
Finance Basics: Security a has an expected rate of return of 1550 and a
Reference No:- TGS02208484

Now Priced at $20 (50% Discount)

Recommended (92%)

Rated (4.4/5)