The U.S.Treasury bill has a return of 2.84 percent while the S&P 500 is returning 10.84 percent.Your portfolio has an actual return of 14.76 percent and a beta of 1.31.What is the portfolio's Jensen's alpha?
A) −0.47 percent
B) −0.92 percent
C) 1.37 percent
D) 1.44 percent
E) 1.57 percent

Question

Quizplus · Accepted Answer

Jensen's alpha = 0.1476 − [0.0284 + 1.31 (0.1084 − 0.0284)] = 1.44 percent

The USTreasury Bill Has a Return of 2