One Year Ago, Matt Bought 100 Shares of ACE Corp

question 2

Essay

One year ago, Matt bought 100 shares of ACE Corp. for $5,619 including commission. He is about to sell the ACE share for $6,528 net of commissions. When he made the purchase the ASX 300 index was at 907; now it is 1070. The beta of ACE share is 0.98, and the market's risk- free rate is 4.0%. No dividends were paid. Based on Jensen's measure, did Matt make a good purchase?

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Definitions:

Sensory Memory

The shortest-term element of memory, which acts as a buffer for stimuli received through the senses, lasting up to a few seconds.

Retain Information

The capacity to remember or hold onto information over time.

Ended

Having come to a conclusion or termination; the final point of something.

Phonological Loop

A component of the working memory model that deals with auditory information, allowing us to retain and manipulate spoken and written material.