1.If an analyst determines that an asset offers significant alpha returns over the holding period, the present price of the asset must be:

A)   less than its current value.

B)   greater than its current value.

C)   equal to its current value.

D)   greater than its future value.

2.If the price of an asset exceeds its value, then the expected alpha returns will be:

A)   negative.

B)   positive.

C)   zero.

D)   undeterminable.

3.If the price of an asset is less than its value, then the expected alpha returns will be:

A)   positive.

B)   negative.

C)   zero.

D)   undeterminable.

答案和详解如下：

1.If an analyst determines that an asset offers significant alpha returns over the holding period, the present price of the asset must be:

A)   less than its current value.

B)   greater than its current value.

C)   equal to its current value.

D)   greater than its future value.

The correct answer was A)

To have a positive expected alpha return, the asset’s current price must be less than its current value.

2.If the price of an asset exceeds its value, then the expected alpha returns will be:

A)   negative.

B)   positive.

C)   zero.

D)   undeterminable.

The correct answer was A)

The expected convergence of price and value would result in negative alpha returns.

3.If the price of an asset is less than its value, then the expected alpha returns will be:

A)   positive.

B)   negative.

C)   zero.

D)   undeterminable.

The correct answer was A)

The expected convergence of price and value would result in positive alpha returns.