Question
Suppose the risk-free return is 4%. The beta of a managed portfolio is 1.25, the alpha is 1%, and the average return is 14%. Based
Suppose the risk-free return is 4%. The beta of a managed portfolio is 1.25, the alpha is 1%, and the average return is 14%. Based on Jensen's measure of portfolio performance, you would calculate the return on the market portfolio as
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Intermediate Financial Management
Authors: Eugene F. Brigham, Louis C. Gapenski
4th Edition
0030754828, 978-0030754821
