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Last year, a portfolio manager earned a return of 4%. The portfolios beta was 1.5. For the same period, the market return was 10%, and
Last year, a portfolio manager earned a return of 4%. The portfolios beta was 1.5. For the same period, the market return was 10%, and the average risk-free rate was 3%. Jensens alpha for this portfolio is closest to
a. | 2.4% | |
b. | -5.2% | |
c. | -9.5% |
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