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A risky portfolio has a beta of 0.7, an actual return of 12.8%, and an equity risk premium of 5.25%. The risk-free rate is 4.85%.
A risky portfolio has a beta of 0.7, an actual return of 12.8%, and an equity risk premium of 5.25%. The risk-free rate is 4.85%. The Jensen's alpha for this portfolio is:
Question 6 options:
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| 4.28%. |
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| 7.67%. |
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| 2.70%. |
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| None of the other answers. |
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| 5.73%. |
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