What is the expected alpha return in excess of the benchmark

Reference no: EM133377641

Question: Suppose Portfolio A has an expected return of 8%, volatility of 20%, and a beta of 0.5. Suppose the market has an expected return of 10% and volatility of 25%. Finally, suppose the risk-free rate is 5%. What is the expected Alpha (return in excess of the benchmark) for Portfolio A?

Reference no: EM133377641

Questions Cloud

What is a fair value for the firms shares : If the firm expects to have $2 million of free cash flow, and a growth rate of 4%, what is a fair value for the firm's shares

Explain the pros and cons of childhood organized sports : Explain the pro's and cons of childhood organized sports. What are some of the reason's children quit sports and is there a gender difference with the reason

What is the price of the stock today : After that, the dividends are expected to grow at 3.8 percent forever. If the required return is 11.6 percent, what is the price of the stock today

How to identify the values and needs of diverse cultures : Explain how to identify the values and needs of diverse cultures and communities in order to incorporate students' experiences, cultures.

What is the expected alpha return in excess of the benchmark : suppose the risk-free rate is 5%. What is the expected Alpha (return in excess of the benchmark) for Portfolio A

How do you accept change in your workplace or facility : How do you accept change in your workplace or facility? Do you think most employees are resistant to change? What are some barriers to change?

How neglect of children from kss relates to self-awareness : The UK Knowledge and Skills Statement for child and family in social work states abuse and neglect of children.

What is the firms as firm asset beta : pretax cost of debt is 0.4 percent.the debt equity ratio is.47.if you apply the common beta assumption,what is the firms as firm asset beta

What aspects of the american nurses association code : Which findings are most important and noticed by the nurse as clinically significant? What additional information is needed by the nurse to clarify

User Account

All Pages