For the Last Quarter, the Return for Portfolio a Was

question 47

Multiple Choice

For the last quarter, the return for Portfolio A was 6.2% with a beta of .9. The market return was 7.6% and the riskfree return was 2.8%. The ex post alpha for Portfolio A is .5 and the error for Portfolio A's excess returns is

• A) -1.24%.
• B) .96%.
• C) - .96%.
• D) .72%.

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Definitions:

Educated Consumers

Consumers who are well-informed about products, services, and market practices, enabling them to make discerning purchasing decisions.

Marketing Strategies

Comprehensive plans formulated by organizations to reach and persuade potential customers to purchase their products or services.

Consumer Confidence

A measure of how optimistic or pessimistic consumers are regarding their expected financial situation, an indicator of the overall state of the economy.

Purchasing Power

The ability of an individual or group to buy goods and services, often related to their income and the price level of goods.