A Stock Has a Return of 16

question 80

Multiple Choice

A stock has a return of 16.9 percent,a standard deviation of 11.7 percent,and a beta of 1.50.The risk-free rate is 2.89 percent and the market risk premium is 8.45 percent.What is the Jensen-Treynor alpha of this stock?

• A) −1.37 percent
• B) −1.09 percent
• C) −0.48 percent
• D) 0.89 percent
• E) 1.05 percent

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