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

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 that the stock is expected to perform in line with the market or its benchmark, neither outperforming nor underperforming it.

Absent Research, You Should Assume the Alpha of a Stock