Suppose the Risk-Free Return Is 3

question 29

Multiple Choice

Suppose the risk-free return is 3%. The beta of a managed portfolio is 1.75, the alpha is 0%, and the average return is 16%. Based on Jensen's measure of portfolio performance, you would calculate the return on the market portfolio as

• A) 12.3%.
• B) 10.4%.
• C) 15.1%.
• D) 16.7%.

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Definitions:

Power Currencies

The various types of leverage or assets (such as resources, relationships, or knowledge) that individuals or groups possess, which can influence power dynamics in social interactions.

Competitive Power

Competitive Power refers to the ability or capacity of an entity, such as a person or organization, to outperform rivals in a particular domain or competition.

Low Power

A state in which an individual or group possesses limited ability to influence others or events.

Distribution of Power

The way power is allocated and exercised within a society, organization, or relationship, impacting decision-making and control.