A Portfolio Has a Beta of 1

question 10

Multiple Choice

A portfolio has a beta of 1.25 and an actual return of 13.0 percent.The risk-free rate is 4.50 percent and the market risk premium is 8.2 percent.What is the value of Jensen's alpha?

• A) −0.86
• B) −1.01
• C) −1.14
• D) −1.25
• E) −1.34

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Definitions:

Emotion Labour

The process of managing and sometimes suppressing personal feelings to fulfill the emotional requirements of a job, especially in service-oriented professions.

Manage Emotion

The process of recognizing, understanding, and properly expressing one's emotions in order to achieve emotional balance and well-being.

Emotion Management

The process of managing one's emotions and emotional expressions based on the situation and societal expectations.

Emotion Labour

The process of managing feelings and expressions as part of fulfilling the emotional requirements of a job.