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%.
Correct Answer:
Verified
Correct Answer:
Verified
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