Question 23
Your expected return on a stock is 18%. The stock has a beta of 1.6. If the risk-free rate is 4% and the expected market return is 12%, what is the stock's alpha (in percent)?
-2.4%
-1.2%
1.2%
2.4%
Question 23: Your expected return on a stock is 18%. The stock has a …
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Correct answer
1.2%
Question 23 of 35 in the IIT Madras BS Corporate Finance (Corporate Finance) End Term paper sat on 10 May 2026, in the January 2026 term (Corporate Finance 06 May 26). It carries 3 marks.
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