A stock's alpha measures the stock's ________.
A) expected return
B) abnormal return
C) excess return
D) residual return

Name: A stock's alpha measures the stock's ________. A) expected return B) abnormal return C) excess return D) residual return
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Question

Quizplus · Accepted Answer

Alpha measures the abnormal return of a stock, which is the difference between the actual return and the expected return based on the stock's beta coefficient.

A Stock's Alpha Measures the Stock's ________