Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. given the characteristic line of firm a with an al

Given the Characteristic line of firm A with an alpha of -0.2% and a beta...

80.2K

Verified Solution

Question

Finance

Given the Characteristic line of firm A with an alpha of -0.2% and a beta of 2, which one of the following statements is the most correct?

Group of answer choices

firm A's alpha is negative, implying that the firm is overpriced according to the single factor model.

Firm A negatively comoves with the market or runs again the market.

None of the above.

Firm A has a very low market risk.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

Write the equation in logarithmic form 34 81

Statistics
1.2K views

To ensure Fork-lifts are not over-loaded, design engineers have to consider the weights of cargo. Suppose...

Advance Math
1.2K views

We wish to create a partition of the Cartesian plane. Determine if the following sets are...

Biology
1.2K views

Which of the following promotes ovulation Olow levels of estradiol O estradiol plus progesterone GnRH...

Biology
1.2K views

12 13 14 8 11 15 10 Labeling Activity 1 1 2 9 3 5...

Geometry
1.2K views

b g g h h 41 55 Y 33 8 B a a B Y...

Calculus
1.2K views

Continue to go with f[x] = Log[x] So that f'[x]=1/xBut this time come up with...

Algebra
1.2K views

Macmillan Learning Follow the four step process to sketch the graph of the rational function...

Accounting
1.2K views

Ratio Analysis [ The following information applies to the wuestions displayed below...

Accounting
1.2K views

Directions: Describe or give your own idea about the given pictures

Accounting
1.2K views

(b) Calculate the following ratios for McKie Ltd: i. Current ratio ii....

Accounting
1.2K views

Paramount Corporation owns 100 percent of Sacker Company. Paramount acquired Sacker on January 1, 2016,...