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If the return on portfolio A is 10%, the market portfolio return is 12%, the inflation rate is 2%, the risk-free rate is 3%, the
If the return on portfolio A is 10%, the market portfolio return is 12%, the inflation rate is 2%, the risk-free rate is 3%, the standard deviation of the return for portfolio A is 8% the standard deviation of the return on the market portfolio is 14%, and the portfolio As beta is 0.6, the Jensens alpha for portfolio A will be 1.60%.
- A. True
- B. False
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