A Portfolio Has an Actual Return of 15

question 60

Multiple Choice

A portfolio has an actual return of 15.17%, a beta of .90, and a standard deviation of 7.2%. The market return is 13.4% and the risk-free rate is 2.8%. What is the portfolio's Jensen's alpha?

• A)2.25%
• B)2.51%
• C)2.67%
• D)2.83%
• E)3.04%