What Is the Alpha of a Portfolio with a Beta

question 40

Multiple Choice

What is the alpha of a portfolio with a beta of 2 and actual return of 15%?

• A) 0%
• B) 13%
• C) 15%
• D) 17%

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Definitions:

Psychological

Relating to the mind or mental processes and how they influence behavior, emotions, and cognition.

Stressor

Any event or situation that causes stress, forcing an individual to adapt or react to mitigate the source of stress.

Stress Response

The body's reaction to any change that requires an adjustment or response, which can involve physical, mental, or emotional strain or tension.

Stress Disorder

A mental health condition triggered by experiencing or witnessing a highly traumatic event, characterized by persistent distress and anxiety.