Calculate the Jensen measure of performance evaluation for Sooner Stock Fund.
A)2.6%
B)4.00%
C)8.67%
D)31.43%
E)37.14%

Name: Calculate the Jensen measure of performance evaluation for Sooner Stock Fund. A)2.6% B)4.00% C)8.67% D)31.43% E)37.14%
Brand: Quizplus
Rating: 4.9 (39 reviews)

Question

Quizplus · Accepted Answer

The Jensen measure (alpha) is calculated as the difference between the actual return of the portfolio and the expected return based on the Capital Asset Pricing Model (CAPM). The correct calculation results in an alpha of 2.6%.

Calculate the Jensen Measure of Performance Evaluation for Sooner Stock