A Portfolio Has an Actual Return of 15

question 33

Multiple Choice

A portfolio has an actual return of 15.17 percent,a beta of .85,and a standard deviation of 7.2 percent.The market return is 13.4 percent and the risk-free rate is 2.8 percent.What is the portfolio's Jensen's alpha?

• A)2.25 percent
• B)2.51 percent
• C)2.67 percent
• D)3.36 percent
• E)4.04 percent

---

Definitions:

Unique Flavours

Distinctive tastes or essences that set a food item or product apart from others in the marketplace.

Focus Strategy

A competitive approach in which a company concentrates on serving a specific segment of the market.

Unique Market Segment

A distinct group within a market that has its own specific needs, preferences, and characteristics that differentiate it from other segments.

Competitive Advantage

is a condition or circumstance that puts a company in a favorable or superior business position compared to its competitors.