A Stock Has a Return of 16

question 82

Multiple Choice

A stock has a return of 16.9 percent, a standard deviation of 11.7 percent, and a beta of 1.57. The risk-free rate is 2.65 percent and the market risk premium is 8.45 percent. What is the Jensen-Treynor alpha of this stock?

• A) -1.37 percent
• B) -1.09 percent
• C) -0.48 percent
• D) 0.29 percent
• E) 0.63 percent

Understand the effectiveness of different organizational plans in written communication.

Grasp the role of proofreading in ensuring the mechanical and grammatical accuracy of business writing.

Acknowledge the impact of digital monitoring in the workplace and its implications on employee behavior.

Understand the stages involved in the writing process and their characteristics.

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Definitions:

Substitutes

Goods or services that can replace each other in usage, providing similar utility to the consumer.

Price Increases

A rise in the cost of goods or services, which can affect demand, supply, and the overall economy.

Demand Shifts Left

A demand shift left is when the demand curve for a good or service shifts to the left, indicating a decrease in demand at all price levels, often due to changes in consumer preferences, income, or substitutes.

Air Travel

The act of traveling in an aircraft, often commercially, where passengers are transported from one location to another.