Using the index model, the alpha of a share is 3.0%, the beta if 1.1 and the market return is 10%. What is the residual given an actual return of 15%?
A) 0.0%
B) 1.0%
C) 2.0%
D) 3.0%
Correct Answer:
Verified
Q49: There are two independent economic factors M1
Q51: You consider buying a share at a
Q52: If the simple CAPM is valid and
Q53: The risk premium for exposure to exchange
Q54: According to the CAPM, what is the
Q55: Research has identified two systematic factors that
Q56: The risk premium for exposure to aluminum
Q59: Two investment advisors are comparing performance. Advisor
Q73: Assume that both X and Y are
Q81: The measure of risk used in the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents