Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 06, 2024

Suppose you have the following inputs. What is the Jensons alpha of this portfolio? Show your work. Risk-free rate 3% MRP 9% SMB 2% HML

Suppose you have the following inputs. What is the Jensons alpha of this portfolio? Show your work.

Risk-free rate	3%
MRP	9%
SMB	2%
HML	3%
?_MRP	.80
?_SMB	1.24
?_HML	.41
Actual Return (R_p)	17.21%

a) 3.30%

b) -2.79%

c) 4.54%

d) 2.21%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Political Economy Of Chinese Finance

Authors: J. Jay Choi , Michael R. Powers , Xiaotian Tina Zhang

1st Edition

1785609580,1785609572

More Books

Students also viewed these Finance questions

Question

★★★★★

Bura Company accumulates the following adjustment data at December 31. Indicate (1) The type of adjustment (prepaid expense, accrued revenue, and so on) and (2) The status of the accounts before...

Answered: 1 week ago

Question

★★★★★

Just need #1 chart answered C6 Design Scenario: ElectroMyCycle In Chapter 1, "Analyzing Business Goals and Constraints," you learned about ElectroMyCycle, a manufacturer of electric motorcycles....

Answered: 1 week ago

Question

★★★★★

=+ b. Now suppose the two airlines play this game twice. And suppose each airline can play one of two strategies: it can play either always charge the low price or tit for tat1===+that is, it starts...

Answered: 1 week ago

Question

★★★★★

On January 1, 2008, a U.S. company purchased 100% of the outstanding stock of Ventana Grains, a company located in Latz City, New Zealand. Ventana Grains was organized on January 1, 1994. All the...

Answered: 1 week ago

Question

★★★★★

Companies sometimes consider stock splits to bring down the price so that the stock attracts more purchases. Consider the following case: Happy Monkey Manufacturing currently has 15,000 shares of...

Answered: 1 week ago

Question

★★★★★

We are going to be looking at the Balance Sheet (BS), the Profit and Loss Statement (P&L), and the Cash Flow Statement (CF). Obviously, all three are important but the P&L and Balance Sheet can...

Answered: 1 week ago

Question

★★★★★

Min-Jun and Min-Suh want to contribute $120,000 to a 529 plan for the benefit of their new grandchild. If done shortly after the birth of the child, with a 7.00 percent annual return and no other...

Answered: 1 week ago

Question

★★★★★

Delcom ltd is planning to introduce a new product. Market research information suggest that the product should sell 100,000 units over its lifecycle at a price of Ksh 420 per unit. The company seeks...

Answered: 1 week ago

Question

★★★★★

Question 7 0 out of 6 points If the physical count of the inventory revealed $216,000 of merchandise on hand and the inventory records reported $225,000, what would be the necessary adjusting entry...

Answered: 1 week ago

Question

★★★★★

Required information [The following information applies to the questions displayed below.) Janson Pharmaceuticals incurred the following costs in 2021 related to a new cancer drug Research for new...

Answered: 1 week ago

Question

★★★★★

The Heating Division of Sheffield International produces a heating element that it sells to its customers for $44 per unit. Its unit variable cost is $27, and its unit fixed cost is $5. Top...

Answered: 1 week ago

Previous Question Next Question