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QUESTION 22 The following data are available relating to the performance of Friedman Stock Fund and the market portfolio Friedman Market Portfolio Average return 18%

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QUESTION 22 The following data are available relating to the performance of Friedman Stock Fund and the market portfolio Friedman Market Portfolio Average return 18% 12% Standard deviations of returns 28% 224 Beta 1.15 100 Residual standard deviation 196 09 The risk free return during the sample period was 4% Calculate Jensen's Alpha for Friedman Stock Fund 100% 2 805 04 40% 8 205

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