Estimate the quarterly excess return

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Question: You are told that Land's End, a catalog retailer, earned an excess return (Jensen's alpha), in annualized terms, of 0.38 over the last 5 years and that it had a beta of 1.5 during the same period. Assuming that this estimate came from a quarterly regression of stock returns against a market return and that the average annualized risk-free rate during the period was 0.042

Estimate the quarterly excess return.

Reference no: EM132956745

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