A Portfolio Has an Actual Return of 15

question 32

Multiple Choice

A portfolio has an actual return of 15.17 percent, a beta of .93, 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) 3.96 percent
• E) 4.04 percent

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Definitions:

Bloom's Domains

The categorization of educational objectives by cognitive, affective, and psychomotor domains, as proposed by Benjamin Bloom, to guide instructional design and assessment.

Behaviourist Theory

A theory in psychology which states that all behaviors are learned through interaction with the environment, emphasizing external behaviors over internal thoughts.

Teaching Strategies

A range of methods or approaches used by educators to facilitate learning and improve student outcomes.

Incentive Spirometer

A medical device used to help patients improve the functioning of their lungs, encouraging them to take deep breaths by using visual feedback.