FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A portfolio has a beta of 1.2 and an actual return of 15.7 percent. The risk-free rate is 3.5 percent and the market risk premium

A portfolio has a beta of 1.2 and an actual return of 15.7 percent. The risk-free rate is 3.5 percent and the market risk premium is 6.3 percent. What is the value of Jensen's alpha? (Enter your alpha answers as a percent rounded to 2 decimal places ( e.g., 0.22%).)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Investments

Essentials Of Investments

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

12th Edition

1260772160, 978-1260772166

More Books

Students also viewed these Finance questions

Question

★★★★★
Why does a piece of watermelon stay cool for a longer time than sandwiches do when both arc removed from a picnic cooler on a hot day?

Answered: 1 week ago

Question

★★★★★
5 Why do some studies require a multi-stage sampling approach?

Answered: 1 week ago

Question

★★★★★
What functions might this behavior be serving?

Answered: 1 week ago

Question

★★★★★
Five years ago, when the relevant cost index was 120, a nuclear centrifuge cost $40,000. The centrifuge had a capacity of separating 1500 gallons of ionized solution per hour. Today, it is desired to...

Answered: 1 week ago

Question

★★★★★
1. Cul de las siguientes afirmaciones sobre responsabilidades es verdadera? Deben surgir a travs de una obligacin contractual. El deber o responsabilidad obliga a la entidad. La entidad a menudo...

Answered: 1 week ago

Question

★★★★★
If a monopoly's demand is P = 200 - 4Q and marginal cost MC = 20, what is the firm's profit maximizing quantity to be produced? Keep your answer with two decimals.

Answered: 1 week ago

Question

★★★★★
Differentiate the function. r(z) = 2-8 - 21/2 r'(z) =

Answered: 1 week ago

Question

★★★★★
on list K Find the angle between v and w. v=-3i+2j, w=3i+9j estion 14 The angle between v and w is . (Do not round until the final answer. Then round to the nearest tenth as needed.) uestion 15...

Answered: 1 week ago

Question

★★★★★
1- List five things a good CGL should have. 2- List 3 state in the United States to open LLC and state why. 2. According to your textbook, 1- List and explain the qualities to look for when choosing...

Answered: 1 week ago

Question

★★★★★
Fill in the name and empirical formula of each ionic compound that could be formed from the ions in this table: Some ionic compounds cation anion empirical formula Cs ci Cs Cs + Br I name of compound...

Answered: 1 week ago

Question

★★★★★
(a) Determine the research question you are exploring from the theme or concept of sustainability. (b) Write the research question (only one question). (c) Identify the relevant 5 academic journal...

Answered: 1 week ago

Question

★★★★★
Appreciate the importance of establishing and maintaining a solid one-to-one relationship with each employee in the department and the need to know each as a whole person to be an effective...

Answered: 1 week ago

Question

★★★★★
Perspective, and other characteristics for the purpose of explaining some of the tensions that develop between the two groups

Answered: 1 week ago

Question

★★★★★
Appreciate the value and importance of employee participation and input

Answered: 1 week ago

Previous Question Next Question