Complete the table with the alphas below: (Round to one decimal place.) Expected Return Volatility 21% 45% 25% Green Leaf NatSam HanBel Rebecca Automobile 12% 9% 11% 5% 32% Beta 1.39 2.05 0.73 1.13 Alpha % % % %

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Assume that the CAPM is a good description of stock price returns. The market expected return is 8% with 12%  volatility and the​ risk-free rate is 4% . New news arrives that does not change any of these numbers but it does change the expected return of the following​ stocks: 
a. At current market​ prices, which stocks represent buying​ opportunities?
b. On which stocks should you put a sell order​ in?

Complete the table with the alphas below: (Round to one decimal place.)
Expected Return
Volatility
21%
45%
25%
Green Leaf
NatSam
HanBel
Rebecca
Automobile
12%
9%
11%
5%
32%
Beta
1.39
2.05
0.73
1.13
Alpha
%
%
%
%
Transcribed Image Text:Complete the table with the alphas below: (Round to one decimal place.) Expected Return Volatility 21% 45% 25% Green Leaf NatSam HanBel Rebecca Automobile 12% 9% 11% 5% 32% Beta 1.39 2.05 0.73 1.13 Alpha % % % %
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