A Portfolio Has an Actual Return of 15

question 74

Multiple Choice

A portfolio has an actual return of 15.17 percent,a beta of 0.90,and a standard deviation of 7.2 percent.The market return is 13.4 percent and the risk-free rate is 2.8 percent.What is the portfolio's Jensen's alpha?

• A) 2.25 percent
• B) 2.51 percent
• C) 2.67 percent
• D) 2.83 percent
• E) 3.04 percent

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Definitions:

Commercial Real Estate Transaction

The process involving the buying, selling, or leasing of properties used for business purposes, including offices, warehouses, and retail spaces.

Residential

Relating to a place of dwelling or living, typically used to describe homes or communities intended for living rather than commercial or industrial use.

Chain of Title

The sequence of historical transfers of title to a piece of property or land; a record tracing the ownership back through time.

Sworn Document

A document that has been affirmed or declared to be true in the presence of a legally authorized official, often under oath or penalty of perjury.