Question

According to the Capital Asset Pricing Model (CAPM), a security will

An alpha of zero is able to generate a return which greater than the market return

O A positive alpha is considered overpriced, since the security outperforms the market.

An alpha of zero is able to generate a return which is inferior to the market return

A positive alpha is considered underpriced, since the security outperforms the market.​

Answer 1

Answer:

Alpha is a measure of the active return on an investment, the performance of that investment compared with a suitable market index.