Question

If John's stock return was -1% and the TSX stock index had a 3% return, the...

If John's stock return was -1% and the TSX stock index had a 3% return, the excess return of John's stock above the market is

Select one:

a. -2 percent.

b. 4 percent.

c. -4 percent.

d. 2 percent.

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Answer #1

Answer: c. -4 Percent

Explanation:

Because the stocks return is showing as negative the excess return of John's stock above the market is -4%.

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