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Cecil owns a separately managed account that is overseen by an investment adviser at a local brokerage house. Over the past year, the portfolio produced
Cecil owns a separately managed account that is overseen by an investment adviser at a local brokerage house. Over the past year, the portfolio produced a 12% return with a beta of 1.05. The risk-free rate is 3.5%, and the overall market returned 10.85%. Based on this information, calculate Jensen's alpha and determine if the adviser added any value to the portfolio.
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