A Portfolio Has a Beta of 1

question 33

Multiple Choice

A portfolio has a beta of 1.42 and an actual return of 13.5%. The risk-free rate is 1.5% and the market risk premium is 7.4%. What is the value of Jensen's alpha?

• A)−.93%
• B)1.05%
• C)1.32%
• D)1.49%
• E)1.69%

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The total amount of money that an employee is paid annually by their employer for their job duties.

Annual Raises

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