During the past four years, Portfolio X has had a mean return of 4.3% per quarter and beta of .9. During the same time period, the market averaged a 4.6% return, and 90 day treasury bills averaged a 1.6% return. Compared to the ex post SML,
A) Portfolio X has a negative ex post alpha.
B) Portfolio X has an average performance.
C) Portfolio X had an inferior performance.
D) Portfolio X had a superior performance.
Correct Answer:
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