What Is Jensen's Alpha of a Portfolio Comprised of 45

question 13

Multiple Choice

What is Jensen's alpha of a portfolio comprised of 45 percent portfolio A and 55 percent of portfolio B?
The risk-free rate is 3.1 percent and the market risk premium is 6.8 percent.

• A) −1.25 percent
• B) 0.47 percent
• C) 1.08 percent
• D) 1.46 percent
• E) 2.04 percent

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Definitions:

Tort Action

A lawsuit or legal claim brought forth as a result of a tort, aimed at recovering damages or seeking remedy for harm caused.

Defense

Reasons that a defendant offers in an action or suit as to why the plaintiff should not obtain what he or she is seeking.

Liability

Legal responsibility or obligation to another, enforceable by civil remedy or criminal punishment.

Proximate Cause

A legal concept that connects an individual's actions to the resulting harm or damage, indicating a direct link between the cause and effect.