The risk-free rate is 1.41%, a stock's adjusted systematic risk exposure is 0.8, and the...

60.1K

Verified Solution

Question

Accounting

The risk-free rate is 1.41%, a stock's adjusted systematic risk exposure is 0.8, and the market risk premium is 5.87%. If the expected return for this stock is 7.18%, then what is the estimated alpha according to the Capital Asset Pricing Model? State your answer as a percentage with two decimal places and not in decimal form (i.e,13.21, not 0.1321).
image

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