Question 3 This question is based on the Alpha_Beta tab of spreadsheet. Fill in...
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Finance
Question 3
This question is based on the Alpha_Beta tab of spreadsheet.
Fill in the highlighted cells using appropriate formulas.
Explain why the portfolio returns would be different from the expected returns of the current holdings. Hint: transaction costs is part of the answer, but theres something more.
What does this mean about the way you should interpret the alpha.
A B C D E F G SD (Annualized) Annualized Excess Return Annualized Return Beta Expected Portfolio Return Implied Portfolio Alpha Sharpe Ratio A B C D E F G SD (Annualized) Annualized Excess Return Annualized Return Beta Expected Portfolio Return Implied Portfolio Alpha Sharpe Ratio
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