Suppose the risk-free return is 3%.The beta of a managed portfolio is 1.75,the alpha is 0%,and the average return is 16%.Based on Jensen's measure of portfolio performance,you would calculate the return on the market portfolio as
A)12.3%
B)10.4%
C)15.1%
D)16.7%
E)none of the above

Question

Quizplus · Accepted Answer

The Answer of Suppose the risk-free return is 3%.The beta of a managed portfolio is 1.75,the alpha is 0%,and the average return is 16%.Based on Jensen's measure of portfolio performance,you would calculate the return on the market portfolio as
A)12.3%
B)10.4%
C)15.1%
D)16.7%
E)none of the above

Suppose the Risk-Free Return Is 3