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:

Culture

The shared beliefs, values, norms, and practices that influence the behavior of a group of people.

Values

Core principles or standards that guide behavior and decision-making in individuals or organizations.

Boundary Violation

An act of surpassing limits in professional or personal settings, leading to inappropriate or unethical behavior.

Boundary

a line or limit that defines the edge of a space or area, distinguishing it from other spaces or areas.