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%

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Definitions:

Digestive System

A series of organs responsible for breaking down food into nutrients, which the body uses for energy, growth, and cell repair.

Nutrients

Substances obtained from food that are vital for growth, metabolism, and for maintaining health.

Small Intestine

A part of the digestive system where most of the digestion and absorption of nutrients and minerals from food occurs.

Digestive System

The digestive system is a series of organs responsible for breaking down food, absorbing nutrients, and eliminating waste.