After running a linear regression with 1-factor, with the market premium, if alpha is negative then the stock? O Is said to overperform O is said to underperform O it does not underperform or over perform O not enough information
After running a linear regression with 1-factor, with the market premium, if alpha is negative then the stock? O Is said to overperform O is said to underperform O it does not underperform or over perform O not enough information
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Transcribed Image Text:After running a linear regression with 1-factor, with the market premium,
if alpha is negative then the stock?
O Is said to overperform
O is said to underperform
O it does not underperform or over perform
O not enough information
Expert Solution

Step 1
In the linear regression analysis of the market research, an alpha is a statistical measure that tells the performance of an investment when compared to a suitable given benchmark. The values of an alpha could be negative, positive or zero.
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