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Which asset has the largest mispricing

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Reference no: EM132618372

Problem 1: Suppose that the alpha of asset X is -0.04 and the alpha of asset Y is 0.02. Which asset has the largest mispricing?

Select one:

Option a. Asset X

Option b. Asset Y

Option c. It depends on the betas

Option d. It depends on the systematic variance of the assets

Option e. It's impossible to say

Reference no: EM132618372

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