A Portfolio Has a Total Return of 10

question 35

Multiple Choice

A portfolio has a total return of 10.5%, a beta of 0.72 and a standard deviation of 6.3%. The risk free rate is 3.8%, the market return is 12.4%. Jensen's measure of this portfolio's performance is

• A) 0.5%.
• B) 4.3%.
• C) 7.9%.
• D) 9.3%.

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Definitions:

Control Groups

In experiments, the groups that do not receive the experimental treatment and are used as a baseline to compare the effects of the treatment.

Treatment Groups

In experimental research, groups of participants receiving the intervention or treatment being tested, as opposed to control groups which receive no treatment or a placebo.

Experimental Research

A research method that investigates causal relationships by manipulating one variable to see its effect on another, under controlled conditions.

Independent Variable

The variable that is manipulated in an experiment to test its effects on the dependent variable.