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During the Past Five Years, Portfolio a Has Had a Mean

Question 44

Multiple Choice

During the past five years, Portfolio A has had a mean return of 3.7% per quarter and a beta of 1.2. During the same time period, the market averaged a 3.2% return, and treasury bills averaged a 2.1% return. The value of alpha a. is


A) .14.
B) .28.
C) -.14.
D) .56.

Correct Answer:

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