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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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