Alpha - Beta Separation quiz
Stinky Pinky and Smelly Kelly two equity analysts at Slimy Capital Asset Management (SCAM) are discussing various features of an Alpha Beta Separation approach.
Stinky: In theory it should be easier to generate an alpha using Russell 2000 index than by using S&P 500.
Smelly: Another advantage of the alpha and beta separation approach using Russell 2000 is that it is cheaper to implement short positions in small-cap markets such as stocks in the Russell 2000 index.
A. Stinky and Smelly both are correct
B. Only Stinky is correct
C. Only Smelly is correct |