What Is Jensen's Alpha of a Portfolio Comprised of 45

question 10

Multiple Choice

What is Jensen's alpha of a portfolio comprised of 45 percent portfolio A and 55 percent of portfolio B? The risk-free rate is 3.1 percent and the market risk premium is 6.8 percent.

• A)-1.25 percent
• B)0.47 percent
• C)1.08 percent
• D)1.46 percent
• E)2.04 percent

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