What is Jensen's alpha of a portfolio comprised of 40% Portfolio A and 60% of Portfolio B?
$$\begin{array} { c c c r }
\text { Portfolio } & \text { Average Return } & \text { Standard Deviation } & \text { Beta } \
\text { A } & 16.3\% & 21.5\% & 1.58 \
\text {B } & 11.1 & 10.6 & 1.15
\end{array}$$

The risk-free rate is 1.8% and the market risk premium is 5.3%.
A)1.25%
B)2.47%
C)3.08%
D)4.37%
E)5.38%

Question

What is Jensen's alpha of a portfolio comprised of 40% Portfolio A and 60% of Portfolio B?
$$\begin{array} { c c c r } 
\text { Portfolio } & \text { Average Return } & \text { Standard Deviation } & \text { Beta } \
\text { A } & 16.3\% & 21.5\% & 1.58 \
\text {B } & 11.1 & 10.6 & 1.15
\end{array}$$

The risk-free rate is 1.8% and the market risk premium is 5.3%.
A)1.25%
B)2.47%
C)3.08%
D)4.37%
E)5.38%

Quizplus · Accepted Answer

The Answer of What is Jensen's alpha of a portfolio comprised of 40% Portfolio A and 60% of Portfolio B?
$$\begin{array} { c c c r } 
\text { Portfolio } & \text { Average Return } & \text { Standard Deviation } & \text { Beta } \
\text { A } & 16.3\% & 21.5\% & 1.58 \
\text {B } & 11.1 & 10.6 & 1.15
\end{array}$$

The risk-free rate is 1.8% and the market risk premium is 5.3%.
A)1.25%
B)2.47%
C)3.08%
D)4.37%
E)5.38%

What Is Jensen's Alpha of a Portfolio Comprised of 40