Suppose the Risk-Free Return Is 3

question 20

Multiple Choice

Suppose the risk-free return is 3%.The beta of a managed portfolio is 1.75,the alpha is 0%,and the average return is 16%.Based on Jensen's measure of portfolio performance,you would calculate the return on the market portfolio as

• A)12.3%
• B)10.4%
• C)15.1%
• D)16.7%
• E)none of the above

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Lacking significance, purpose, or value.

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