A Portfolio Has a Jensen's Alpha of

question 71

Multiple Choice

A portfolio has a Jensen's alpha of .93%, a beta of 1.45, and a CAPM expected return of 8.8%. The risk-free rate is 2.5%. What is the actual return of the portfolio?

• A)5.53%
• B)6.17%
• C)7.83%
• D)9.73%
• E)21.9%

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Definitions:

Extroverts

Individuals characterized by their outgoing, sociable, and energized by interactions with other people personality traits.

Virtue

A characteristic or attribute considered to possess moral goodness, and therefore, is appreciated as a cornerstone of a virtuous character.

Erikson

A psychologist best known for his theory on the psychosocial development of human beings, emphasizing eight stages from infancy to adulthood.

Integrity

The quality of being honest and having strong moral principles; moral uprightness.