A Portfolio with a Beta of 0 $-0.005$ B) $0.040$

question 24

Multiple Choice

A portfolio with a beta of 0.5 has a return of 5% and a standard deviation of 10%.If the risk-free rate is 2% and the market return is 9%,calculate the Jensen's alpha measure for the portfolio.

• A) \( -0.005 \)
• B) \( 0.040 \)
• C) \( 0.055 \)
• D) \( 0.057 \)

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Definitions:

Bending Vibrations

Oscillations of atoms in a molecule about their equilibrium positions that change the angle between them without altering the molecule's bond lengths.

Spectrum

A range of values or conditions, often specifically pertaining to the distribution of energy emitted or absorbed by a substance, visible in bands of colors or intensities.

IR Spectroscopy

A technique used in analytical chemistry to identify molecular structure through the absorption of infrared radiation by molecules, leading to vibrational and rotational changes.

Electronegativity

A measure of the tendency of an atom to attract a bonding pair of electrons towards itself in a molecule.