A Stock Had a Return of 16

Multiple Choice

A stock had a return of 16.4 percent and a beta of 1.2. The market return was 12.1 percent and the risk-free rate was 5.2 percent. What is the Jensen-Treynor alpha for the stock?

A) 2.82%
B) 2.43%
C) 2.74%
D) 2.92%
E) 2.51%