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Determine Jensen's alpha for Small Co. given an expected return of 14.66 % in the brokerage account . Assume actual returns are as follows :

Determine Jensen's alpha for Small Co. given an expected return of 14.66 % in the brokerage account . Assume actual returns are as follows : Enter with two decimal places and enter % as a number 60.12 % enter as 60.12 . Enter negative as - 60.12 .

Actual Return

Big Co. 13.07 %

Small 13.92 %

Co. Oil Co. 9.05%

Auto Co. 10.51 %


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The cividend yield in the currme yieid. The eividend yitid in the current yieid. "The expected bewth of the dividond is hero. Brown Foreman Stock Robert inherited the stock from his great-aunt Sarah who died in 2015 and who had bought the stock when the price was $42 per share. When Sarah died, she left Robert 100 shares of Brown Foreman stock. Robert knows that on the date of Sarah's death the stock closed at $35 per share with a high price of $38 and low price of $34. The stock has since split two-for-one and has a curtent dividend yield of 2%. Sarah's executor did not elect the nlternate valuation date. Personal Residence The Trenticostas purchased their personal residence for $350,000 nine months ago. They put down 20% from the sale of their previous home. They were able to get a mortgage rate of 7.5% financed over 30 years. Their monthly payment is $1,957.80 (P S. I) with a balince of $278,300.78 and 352 payments remaining. Ski Condo Mary purchased the ski condo three years ago for $300,000 and put 20% down. The balance was financed over 15 years at 7%. The monthly payment is $2,157.18 (P \& I), and they have made 30 payments. The outstanding balance is $215,254.14. Since the purchase of the condo, Mary has incurred the following restoration costs. The Trenticostas use the condo quite often in the winter and summer, but they are usually able to rent it to friends for 14 days per year at $300 per day. The cividend yield in the currme yieid. The eividend yitid in the current yieid. "The expected bewth of the dividond is hero. Brown Foreman Stock Robert inherited the stock from his great-aunt Sarah who died in 2015 and who had bought the stock when the price was $42 per share. When Sarah died, she left Robert 100 shares of Brown Foreman stock. Robert knows that on the date of Sarah's death the stock closed at $35 per share with a high price of $38 and low price of $34. The stock has since split two-for-one and has a curtent dividend yield of 2%. Sarah's executor did not elect the nlternate valuation date. Personal Residence The Trenticostas purchased their personal residence for $350,000 nine months ago. They put down 20% from the sale of their previous home. They were able to get a mortgage rate of 7.5% financed over 30 years. Their monthly payment is $1,957.80 (P S. I) with a balince of $278,300.78 and 352 payments remaining. Ski Condo Mary purchased the ski condo three years ago for $300,000 and put 20% down. The balance was financed over 15 years at 7%. The monthly payment is $2,157.18 (P \& I), and they have made 30 payments. The outstanding balance is $215,254.14. Since the purchase of the condo, Mary has incurred the following restoration costs. The Trenticostas use the condo quite often in the winter and summer, but they are usually able to rent it to friends for 14 days per year at $300 per day

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