Question 14
Your expected return on a stock is 15%. The stock has a beta of 1.5. If the risk-free rate is 4% and the expected market return is 10%, what is the stock's alpha (in percent)?
-2.0%
-1.0%
1.0%
2.0%
Question 14: Your expected return on a stock is 15%. The stock has a …
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Correct answer
2.0%
Question 14 of 30 in the IIT Madras BS Corporate Finance (Corporate Finance) End Term paper sat on 21 Dec 2025, in the September 2025 term (Corporate Finance 18 Dec 25). It carries 3 marks.
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