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%

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Definitions:

Depression

Characterized by feelings of sadness, hopelessness, and frustration; changes in sleep and eating habits; problems with concentration; loss of interest in activities; and loss of energy and motivation.

Perceived Autonomy

An individual's sense of control over their own actions and decisions, and the extent to which they feel their actions are self-determined.

Lack of Support

Refers to a situation where an individual or group misses encouragement, assistance, or resources usually expected from others, including social networks or institutions.

Crisis

A critical or decisive time or situation characterized by a turning point or a condition of instability leading to significant change.