If beta equals 70%,then alpha
A)equals 30%.
B)equals 50%.
C)equals 70%.
D)cannot be determined from information provided.

Question

Quizplus · Accepted Answer

Alpha and beta are terms often used in finance, particularly in investing, to describe different concepts. Alpha refers to the excess returns of a portfolio relative to the return of a benchmark index. Beta measures the volatility of an investment or portfolio relative to the overall market. The value of alpha does not directly depend on the value of beta; they measure different aspects of investment performance. Therefore, without additional context or information, the value of alpha cannot be determined solely based on the value of beta.

If Beta Equals 70%,then Alpha