question archive What is the relationship between the CAPM alpha and price reversal? For example, I am trying to figure out if the CAPM alpha gives me enough evidence if there is a price reversal between the two alphas below
Subject:FinancePrice: Bought3
What is the relationship between the CAPM alpha and price reversal?
For example, I am trying to figure out if the CAPM alpha gives me enough evidence if there is a price reversal between the two alphas below.
First-year Alpha: 0.38
Second-year Alpha: 0.39