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:

Pituitary Gland

A small, pea-sized gland located at the base of the brain, responsible for the production and regulation of many hormones that control various bodily functions.

Hippocampus

The hippocampus is a brain structure involved in the formation of new memories and is also associated with learning and emotions.

Fornix

A C-shaped structure in the brain, part of the limbic system, that acts as a major output tract of the hippocampus.

Amygdala

A part of the brain involved in processing emotions, including fear and pleasure.