A Stock Has a Return of 16

question 84

Multiple Choice

A stock has a return of 16.18 percent and a beta of 1.47.The market return is 10.65 percent and the risk-free rate is 3.20 percent.What is the Jensen-Treynor alpha of this stock?

• A) −1.12 percent
• B) −0.17 percent
• C) 0.66 percent
• D) 1.38 percent
• E) 1.59 percent

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