Suppose the Risk-Free Return Is 3

question 29

Multiple Choice

Suppose the risk-free return is 3%. The beta of a managed portfolio is 1.75, the alpha is 0%, and the average return is 16%. Based on Jensen's measure of portfolio performance, you would calculate the return on the market portfolio as

• A) 12.3%.
• B) 10.4%.
• C) 15.1%.
• D) 16.7%.

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A naturally occurring crystal form of carbon, known for its extreme hardness, brilliance, and thermal conductivity.

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The protective liquid contained within the amniotic sac surrounding the fetus during pregnancy, providing cushion and supporting fetal development.

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A skin condition often called "heat rash," characterized by small, itchy rashes due to blocked sweat ducts.