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Use the following information to answer questions 3 to 4. Calculate...
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Use the following information to answer questions 3 to 4.
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Expected rate of return
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CAPM required rate of return
|
FF required rate of return
|
Share 1
|
0.23
|
0.19
|
0.20
|
Share 2
|
0.10
|
0.12
|
0.12
|
Share 3
|
0.08
|
0.15
|
0.08
|
Calculate the alpha of the securities using the capital asset pricing model (CAPM).
100%
0%
0%