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Suppose the risk-free return is 9%. The beta of a managed portfolio is 1.2, the alpha is 1%, and the average return is 16%. Based
Suppose the risk-free return is 9%. The beta of a managed portfolio is 1.2, the alpha is 1%, and the average return is 16%. Based on Jensen's measure of portfolio performance, you would calculate the return on the market portfolio as
14%
15%
16%
11.5%
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