What Is Jensen's Alpha of a Portfolio Comprised of 30

question 46

Multiple Choice

What is Jensen's alpha of a portfolio comprised of 30 percent portfolio A and 70 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) 1.85 percent

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Definitions:

Intersex

A person whose physical anatomy does not fit within the traditional definitions of male or female.

Ambiguous

Something that can be understood in more than one way or is not clearly defined or decided.

Androgynous

Describes a person or feature that has qualities or aspects traditionally considered both male and female.

Gender Identity

One's personal sense of their own gender, which may or may not correspond with the sex they were assigned at birth.