Business, 16.11.2019 04:31 annabanana1298
Assume the return on a market index represents the common factor and all stocks in the economy have a beta of 1. firm-specific returns all have a standard deviation of 33%.
suppose an analyst studies 20 stocks and finds that one-half have an alpha of 3.1%, and one-half have an alpha of –3.1%. the analyst then buys $1.3 million of an equally weighted portfolio of the positive-alpha stocks and sells short $1.3 million of an equally weighted portfolio of the negative-alpha stocks.
a. what is the expected return (in dollars), and what is the standard deviation of the analyst’s profit?
Answers: 3
Business, 21.06.2019 14:30, sarahabuadas7396
Do savings and loan associations offer checking accounts?
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Business, 22.06.2019 20:20, 24jgrove
John has served as the chief operating officer (coo) for business graphics, inc., a publicly owned firm, the past 5 years. which of the following statements about john is correct? both john and the ceo of business graphics must certify to the sec that the firm's financial statements are accurate. as the coo, john will be ranked higher than the ceo but still below the cfo. in john's postition as the coo, it is highly unlikely that he would also be the chairperson of the board of directors. as the coo, john would typically be involved with accounting, finance, and asset purchase decisions.
Answers: 2
Assume the return on a market index represents the common factor and all stocks in the economy have...
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