Consider an Asset That Has a Beta of 1

question 21

Multiple Choice

Consider an asset that has a beta of 1.5.The return on the risk-free asset is 6.5% and the expected return on the stock index is 15%.The estimated return on the asset is 20%.Calculate the alpha for the asset.

• A) 19.25%
• B) 0.75%
• C) -0.75%
• D) 9.75%
• E) 9.0%

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Definitions:

Antibody tests

Blood tests that look for antibodies in your blood to determine past exposure to certain infections or diseases or to assess your immune system's response to vaccination.

Collection tube

A tube used in medical and clinical settings for the collection of blood or other specimens from patients for analysis.

Gray stopper

A type of closure used in medical vials or tubes, often indicating specific properties or tests associated with the sample container.

Blood collection tube

A sterile glass or plastic tube with a closure that is evacuated to create a vacuum enabling the draw of a predetermined volume of blood for testing.