Is it true that the market model alpha is the (expected return) - (required return found using the CAPM) when it is assumed the required return using the CAPM is 0? I remember reading this in a solution in Schweser…
Yes
Is it true that the market model alpha is the (expected return) - (required return found using the CAPM) when it is assumed the required return using the CAPM is 0? I remember reading this in a solution in Schweser…
Yes