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:

Strict Product Liability

A legal doctrine that holds sellers or manufacturers liable for defective products regardless of fault or intent, as long as the product was used as intended.

Manufacturer Actions

Refers to the measures or steps taken by a manufacturer in response to product design, production, marketing, and safety concerns.

Defective Condition

A state of imperfection or malfunction in a product that makes it hazardous or unfit for its intended use.

State-Of-The-Art Defense

A legal defense used in product liability cases where the defendant claims the product was using the best technology available at the time of design or manufacture.