Absent research, you should assume the alpha of a stock is
A)zero.
B)positive.
C)negative.
D)not zero.

Question

Quizplus · Accepted Answer

In the absence of research or additional information, the most conservative and neutral assumption to make about a stock's alpha is that it is zero. This means you assume the stock will perform in line with the market expectations, neither outperforming (positive alpha) nor underperforming (negative alpha) the market.

Absent Research, You Should Assume the Alpha of a Stock