Question:
Consider the following information:
Portfolio | Expected Return | Standard Deviation |
Risk-free | 5% | 0 |
Market | 13.2 | 1.0 |
A | 8.0 | 0.6 |
a. Calculate the expected return of portfolio A with a beta of 0.6. (Round your answer to 2 decimal places.)
Expected return: __________ %
b. What is the alpha of portfolio A. (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.)
Alpha: __________ %
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