1. A financial analyst calculates a Merrill-Lynch adjusted beta of 0.60. The sample or historic...
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Accounting
1. A financial analyst calculates a Merrill-Lynch adjusted beta of 0.60. The sample or historic beta must have been _____.
A. 0.40
B. 0.44
C. 1.30
D. 0.6667
2. A portfolio has a beta = 1.5. Last year the portfolio had a return of 13%. Last year the market return was 11% and the risk-free rate of return was 2%.
What was the "alpha" of the portfolio?
A.
-0.5%
B.
-2%
C.
+2.5%
D.
-2.5%
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