A Stock Has a Return of 16

question 42

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 2.65 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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Definitions:

Physical Environment

The tangible, concrete surroundings in which an organism or group operates, including both natural and built structures.

Ambience

The character or atmosphere of a place or environment, often perceived through sensory elements like light, sound, and aroma.

Affective Reaction

An emotional response or feeling that an individual has towards a particular stimulus or situation.

Territoriality

The behavioral pattern of individuals or groups marking and defending an area they consider their own, often against intruders or competitors.