A Portfolio Has a Total Return of 10

question 35

Multiple Choice

A portfolio has a total return of 10.5%, a beta of 0.72 and a standard deviation of 6.3%. The risk free rate is 3.8%, the market return is 12.4%. Jensen's measure of this portfolio's performance is

• A) 0.5%.
• B) 4.3%.
• C) 7.9%.
• D) 9.3%.

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