Suppose You Have 5-Year Annual Data on the Excess Returns

question 17

Multiple Choice

Suppose you have 5-year annual data on the excess returns on a fund manager’s portfolio (“fund ABC”) and the excess returns on a market index (where is the return on fund ABC, is the risk-free rate and is the return on the market index) :

-Suppose that the unbiased estimator of the standard deviation of the disturbance (s) is 5.1. What is the nearest value to the standard errors of the estimated CAPM alpha ( ) of Fund ABC from question 6?

• A) 3.5
• B) 4.5
• C) 5.5
• D) 6.5

Analyze different theories of emotion and their psychological and physiological bases.

Understand the anatomy and functions of different components of the central nervous system (CNS) involved in movement.

Comprehend the roles of spinal segments and their association with body regions.

Recognize the function and impact of brain-computer interfaces.

---

Definitions:

EPS

Earnings Per Share, a financial metric that divides a company's profit by the number of its shares outstanding.

Market Capitalization Rate

The expected return on an investment in a market portfolio, based on the market price of risk.

Constant-Growth DDM

A model for valuing a company's stock by using predicted dividends and discounting them back to present value assuming a constant growth rate.

Preferred Share

A class of ownership in a corporation with a higher claim on assets and earnings than common stock.