Report

ajantha11Follow

Mar. 26, 2023•0 likes## 0 likes

•9 views## views

Be the first to like this

Show More

Total views

0

On Slideshare

0

From embeds

0

Number of embeds

0

Upcoming SlideShare

Byte of Accounting, Inc.General JournalNeed help with 27 through.pdf

Loading in ... 3

Mar. 26, 2023•0 likes## 0 likes

•9 views## views

Be the first to like this

Show More

Total views

0

On Slideshare

0

From embeds

0

Number of embeds

0

Download to read offline

Report

Education

Calculate the expected return of portfolio A with a beta of 1.8. (Round your answer to 2 decimal places.) What is the alpha of portfolio A. (Negative value should be indicated by a minus sign.Round your answer to 2 decimal places.) Consider the following information: Solution a. expected return = Rf + beta [ Rm - Rf] = 0.07 + 1.8 [ 0.11 - 0.07 ] = 0.07 + 1.8 [0.04] = 0.07 + 0.072 = 0.142 or 14.2% b. Alpha means excess of rate of return Alpha = Rf + beta [ Rm - Rf] - expected return = 0.07 + 1.8 [ 0.11 - 0.07] - 0.142 = 0.142 - 0.142 = 0 Alpha is negative , the performance criteria revealsthat manger has not shown strong market timing skills. c. Yes, CAPM is valid the above situation..

ajantha11Follow

Byte of Accounting, Inc.General JournalNeed help with 27 through.pdfajantha11

c). Using = .01 would you ACCEPT or REJECT the null hypothesis (ci.pdfajantha11

c) Which of the following statements are true about the percenti.pdfajantha11

By referring to the definition of unbiasedness explain why the estim.pdfajantha11

By nature of the open systems model, organizations are largely u.pdfajantha11

By using congruences modulo 5, prove that in any Pythagorean triple .pdfajantha11

- Calculate the expected return of portfolio A with a beta of 1.8. (Round your answer to 2 decimal places.) What is the alpha of portfolio A. (Negative value should be indicated by a minus sign.Round your answer to 2 decimal places.) Consider the following information: Solution a. expected return = Rf + beta [ Rm - Rf] = 0.07 + 1.8 [ 0.11 - 0.07 ] = 0.07 + 1.8 [0.04] = 0.07 + 0.072 = 0.142 or 14.2% b. Alpha means excess of rate of return Alpha = Rf + beta [ Rm - Rf] - expected return = 0.07 + 1.8 [ 0.11 - 0.07] - 0.142 = 0.142 - 0.142 = 0 Alpha is negative , the performance criteria revealsthat manger has not shown strong market timing skills. c. Yes, CAPM is valid the above situation.