The USTreasury Bill Has a Return of 2

question 48

Multiple Choice

The U.S.Treasury bill has a return of 2.84 percent while the S&P 500 is returning 10.84 percent.Your portfolio has an actual return of 14.76 percent and a beta of 1.31.What is the portfolio's Jensen's alpha?

• A) −0.47 percent
• B) −0.92 percent
• C) 1.37 percent
• D) 1.44 percent
• E) 1.57 percent

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Definitions:

Artificial Insemination

A medical procedure involving direct insertion of semen into a woman's uterus or cervix to facilitate pregnancy.

Intestacy Law

Laws that govern the distribution of a deceased person's estate when they die without a valid will.

Social Security

A government program designed to provide financial assistance to individuals during retirement, disability, or upon the death of a family breadwinner, funded through payroll taxes.

Federal Law

Laws enacted by the national government of a country, which apply across the entire nation, superseding state laws in areas of conflict.