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A portfolio has an expected return of 16% and a beta of 0.5. If the market return is 18% and the risk-free rate is 3.5%,

A portfolio has an expected return of 16% and a beta of 0.5. If the market return is 18% and the risk-free rate is 3.5%, which of the following comes closest to Jensen's alpha of the A. 5.25% B. 3.75% C. 7.25% D. 1.00%

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