A Stock Has a Return of 16

question 67

Multiple Choice

A stock has a return of 16.18% and a beta of 1.47. The market return is 10.65% and the risk-free rate is 3.20%. What is the Jensen-Treynor alpha of this stock?

• A)−1.12%
• B)−.17%
• C).66%
• D)1.38%
• E)1.59%

---

Definitions:

Digestive

Pertaining to digestion or the system in the body involved in the mechanical and chemical breakdown of food.

Respiratory

Relating to or affecting breathing or the organs involved in breathing.

Urinary

Pertaining to the system of organs involved in the formation, storage, and excretion of urine.

Female Reproductive Organs

The organs involved in producing eggs, providing a site for fertilization and fetal development, and giving birth, including the ovaries, fallopian tubes, uterus, and vagina.