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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