Multiple Choice
Suppose the risk-free return is 4%. The beta of a managed portfolio is 1.2, the alpha is 1%, and the average return is 14%. Based on Jensen's measure of portfolio performance, you would calculate the return on the market portfolio as
A) 11.5%.
B) 14%.
C) 15%.
D) 16%.
Correct Answer:
Verified
Correct Answer:
Verified
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