
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN: 9781337395083
Author: Eugene F. Brigham, Phillip R. Daves
Publisher: Cengage Learning
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Transcribed Image Text:consider the following data for a single factor model economy. all portfolios are well
diversified. suppose portfolio p has an expected return of 19% and beta of 2.0. portfolio m
has an expected retrun of 12% and beta of 1.0. assume that the risk free rate is 7% and that
arbitrage opportunities exist. what is the portfolio p's alpha?
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