Suppose the Risk-Free Return Is 6

question 65

Multiple Choice

Suppose the risk-free return is 6%. The beta of a managed portfolio is 1.5, the alpha is 3%, and the average return is 18%. Based on Jensen's measure of portfolio performance, you would calculate the return on the market portfolio as

• A) 12%.
• B) 14%.
• C) 15%.
• D) 16%.

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Definitions:

Acute Pain

A sudden onset of discomfort or pain that serves as a symptom of injury or illness and typically has a clear cause.

Decreased Cardiac Output

A condition characterized by the heart's inability to pump an adequate volume of blood to meet the body's needs, leading to symptoms such as fatigue and shortness of breath.

Decreased Cardiac Perfusion

A condition where there is reduced blood flow through the heart's arteries, which can compromise heart tissue oxygenation.

Decreased Cardiac Output

A reduction in the amount of blood the heart pumps through the circulatory system per minute.