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A portfolio has a beta = 1.5. Last year the portfolio had a return of 14%. Last year the market return was 11% and the
A portfolio has a beta = 1.5. Last year the portfolio had a return of 14%. Last year the market return was 11% and the risk-free rate of return was 3%. What was the "alpha" of the portfolio?
-2.5%
-1%
+1%
+3%
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