A portfolio has a beta of 1.25 and an actual return of 13.0%. The risk-free rate is 4.0% and the market risk premium is 8.2%. What is the value of Jensen's alpha?
A)−.86
B)−1.01
C)−1.14
D)−1.25
E)−1.34

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The Answer of A portfolio has a beta of 1.25 and an actual return of 13.0%. The risk-free rate is 4.0% and the market risk premium is 8.2%. What is the value of Jensen's alpha?
A)−.86
B)−1.01
C)−1.14
D)−1.25
E)−1.34

A Portfolio Has a Beta of 1