Suppose the Risk-Free Return Is 4

question 27

Multiple Choice

Suppose the risk-free return is 4%. The beta of a managed portfolio is 1.2, the alpha is 1%, and the average return is 14%. Based on Jensen's measure of portfolio performance, you would calculate the return on the market portfolio as

• A) 11.5%.
• B) 14%.
• C) 15%.
• D) 16%.

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Definitions:

Access Point

A networking hardware device that allows wireless devices to connect to a wired network using Wi-Fi or related standards.

Main Router

The primary device in a network that manages traffic between the local network and the internet or other networks.

WEP

Wired Equivalent Privacy, a security protocol that was designed to provide a wireless local area network (WLAN) with a level of security and privacy comparable to what is usually expected of a wired LAN.

WPA

Wi-Fi Protected Access, a security protocol and security certification program developed by the Wi-Fi Alliance to secure wireless computer networks.