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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Definitions:

FX Reserves

Foreign exchange reserves, assets held on reserve by a central bank in foreign currencies, used to back liabilities on their own issued currency as well as to influence monetary policy.

Foreign Investment

The investment of capital by individuals, firms, or governments in business interests located in another country.

Consumer Spending

The total amount of money spent by households and individuals on goods and services within a specific period, a critical indicator of economic health.

British Pounds

British Pounds, also known as GBP, is the official currency of the United Kingdom, used as a medium of exchange for goods and services.