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Which of the following statements is/are false?
Related Topics
Wize University Introduction to Finance Textbook > CAPM
Alpha
3 Activities
Which of the following statements is/are false?
A) A negative alpha means the stock was overpriced
B) A positive alpha means the stock was underpriced
C) An alpha of zero means the stock was underpriced
D) A positive alpha means the stock was overpriced
I don't know
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More Alpha Questions:
Last year you bought a stock with a beta of 0.9. The stock earned 16% this year and the market during that time earned 12%. The risk free rate was 4%. Calculate the stock's alpha.
Last year you bought a stock with a beta of 1.5. The stock earned 17.5% this year and the market during that time earned 15.4%. The risk free rate was 4%.