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A Portfolio Has a Jensen's Alpha of 0

Question 62

Multiple Choice

A portfolio has a Jensen's alpha of 0.82 percent,a beta of 1.40,and a CAPM expected return of 13.7 percent.The risk-free rate is 2.5 percent.What is the actual return of the portfolio?


A) 15.5 percent
B) 16.1 percent
C) 16.8 percent
D) 19.6 percent
E) 21.9 percent

Correct Answer:

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