What is the expected alpha return in excess of the benchmark

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Question: Suppose Portfolio A has an expected return of 8%, volatility of 20%, and a beta of 0.5. Suppose the market has an expected return of 10% and volatility of 25%. Finally, suppose the risk-free rate is 5%. What is the expected Alpha (return in excess of the benchmark) for Portfolio A?

Reference no: EM133377641

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