Answered

Westonci.ca makes finding answers easy, with a community of experts ready to provide you with the information you seek. Connect with a community of experts ready to help you find solutions to your questions quickly and accurately. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.

JetFlight Corporation had an expected excess return of 8% for the past year. Assume JetFlight's beta is 1.43. However, the economy boomed and the stock market beat expectations by 5%,. What was JetFlight's actual (realized) excess return

Sagot :

abiolataiwo2015

If  the economy boomed and the stock market beat expectations by 5%. The JetFlight's actual (realized) excess return is 15.15%

Excess return

Using this formula

Excess return=Expected excess return+(Stock market beats expectation) (beta)

Let plug in the formula

Excess return = 8% + (5%)(1.43) + 0%

DExcess  return=8%+7.15%+0

Excess return = 15.15%

Therefore the JetFlight's actual (realized) excess return is 15.15%

Learn more about excess return here: https://brainly.com/question/25591140

#SPJ1

Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Keep exploring Westonci.ca for more insightful answers to your questions. We're here to help.