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:

Prohibition

The legal act of forbidding something, typically referring to the historical ban on alcohol in the US.

Organized Crime

The planned and coordinated activities of individuals or groups engaged in illegal enterprises, such as drug trafficking, extortion, or money laundering, often with the intent of gaining power, money, or influence.

Pharmaceutical Executives

Senior professionals in the pharmaceutical industry responsible for strategic decision-making, operations, and the development and marketing of drugs.

Law Enforcers

Individuals or groups, typically part of the government, empowered to enforce laws, ensure public safety, and maintain order.