Asked by IRINA FEIJOO CALVAO on Jun 12, 2024
Verified
An investor should do which of the following for stocks with negative alphas?
A) go long
B) sell short
C) hold
D) do nothing
Negative Alphas
A metric indicating that an investment has underperformed relative to its benchmark, adjusted for the level of risk.
Go Long
An investment strategy where an investor buys shares or securities with the expectation that their price will rise over time.
Sell Short
The sale of a security that the seller does not own at the time of the sale, typically with the intention of buying it back later at a lower price to make a profit.
- Analyze the effectiveness of portfolio management by employing risk-adjusted benchmarks.
Verified Answer
Learning Objectives
- Analyze the effectiveness of portfolio management by employing risk-adjusted benchmarks.
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