The US Treasury Bill Has a Return of 3

question 9

Multiple Choice

The U.S. Treasury bill has a return of 3.27 percent while the S&P 500 is returning 10.84 percent. Your portfolio has an actual return of 14.76 percent and a beta of 1.31. What is the portfolio's Jensen's alpha?

• A) -0.47 percent
• B) -0.92 percent
• C) 1.37 percent
• D) 1.41 percent
• E) 1.57 percent

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Definitions:

Instrumentality

The perception that a certain level of effort will lead to a specific level of performance.

Motivation Process

The psychological mechanisms and factors that drive individuals towards achieving certain goals or fulfilling specific needs.

Unsatisfied Needs

Refers to desires or requirements of individuals that have not been fulfilled.

Resulting Tension

The stress or strain that arises from conflict or differing opinions, often within a group or organizational setting.