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An investor considers adding the Cobalt High Income Fund to her portfolio. Cobalt has returned 18% over the previous year while the risk-free rate is
An investor considers adding the Cobalt High Income Fund to her portfolio. Cobalt has returned 18% over the previous year while the risk-free rate is 3%. Measures of risk for Cobalt include a beta of 1.5 and a standard deviation of 25%. The return on the relevant benchmark over the previous year is 13% with a standard deviation of 17%. The investor's estimate of the Jensen's alpha for the Cobalt Fund is closest to: Select one A. -0.01 . B. 0.00 . c. 0.01 . D. 0.05
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