As an analyst at JPMorgan Chase, you are comparing the performances of two investors. Investor A averaged a 25% rate of return and Investor B had a 22% rate of return. The beta of Investor A was 2.4, whereas that of the other was 1.2. If the T-bill rate was 5% and the market return during the period was 15%. Please choose all correct answers.

Please also note that each incorrect answer will reduce the score by 10%.

Please choose all correct answers.

Please also note that each incorrect answer will reduce the score by 10%.

1. Investor B is better than Investor A because Investor A has a higher alpha than Investor B.

2. Investor B is better than Investor A because Investor B has a higher alpha than Investor A

3. The required returns for investor B is 17%

4. The required returns for investor B is 15.60%

5. Investor A is better than Investor B because Investor A has a higher alpha than Investor B.

6. The required returns for investor B is 16%

7. The required returns for investor A is 28%

8. The required returns for investor A is 11.5%

9. The required returns for investor A is 29%

Question

As an analyst at JPMorgan Chase, you are comparing the performances of two investors. Investor A averaged a 25% rate of return and Investor B had a 22% rate of return. The beta of Investor A was 2.4, whereas that of the other was 1.2. If the T-bill rate was 5% and the market return during the period was 15%. Please choose all correct answers.

Please also note that each incorrect answer will reduce the score by 10%.

Please choose all correct answers.

Please also note that each incorrect answer will reduce the score by 10%.

1. Investor B is better than Investor A because Investor A has a higher alpha than Investor B.

2. Investor B is better than Investor A because Investor B has a higher alpha than Investor A

3. The required returns for investor B is 17%

4. The required returns for investor B is 15.60%

5. Investor A is better than Investor B because Investor A has a higher alpha than Investor B.

6. The required returns for investor B is 16%

7. The required returns for investor A is 28%

8. The required returns for investor A is 11.5%

9. The required returns for investor A is 29%

Accepted Answer

To determine the correct answers well calculate the required rate of return for each investor using the Capital Asset Pricing Model CAPM formula and t...

Question

As an analyst at JPMorgan Chase, you are comparing the performances of two investors. Investor A averaged a 25% rate of return and Investor B

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