The return on a portfolio during a particular period was 13 percent,the risk-free rate was 6 percent,the return on the market was 12 percent,and the portfolio beta was 1.2.The performance of the portfolio (according to Jensen's measure)was __________ the market.
B) $$\begin{array} { l } \text { superior to } \quad = \quad ( 13 - 6 ) - [ 1.2 ( 13 -6 ) ] \ \end{array}$$
C) $\text{the same as} \quad \quad= \quad - 0.2 \text{percent}$
D)not compared to Negative alpha,if statistically significant,means inferior performance.

Question

The return on a portfolio during a particular period was 13 percent,the risk-free rate was 6 percent,the return on the market was 12 percent,and the portfolio beta was 1.2.The performance of the portfolio (according to Jensen's measure)was __________ the market.
B) $$\begin{array} { l } \text { superior to } \quad = \quad ( 13 - 6 ) - [ 1.2 ( 13 -6 ) ] \ \end{array}$$ 
C) $\text{the same as} \quad \quad= \quad - 0.2 \text{percent}$ 
D)not compared to Negative alpha,if statistically significant,means inferior performance.

Quizplus · Accepted Answer

The Answer is A

The Return on a Portfolio During a Particular Period Was superior to =(13−6)−[1.2(13−6)]\begin{array} { l } \text { superior to } \quad = \quad ( 13 - 6 ) - [ 1.2 ( 13 -6 ) ] \\\end{array} superior to =(13−6)−[1.2(13−6)]​

The Return on a Portfolio During a Particular Period Was $\begin{array} { l } \text { superior to } \quad = \quad ( 13 - 6 ) - [ 1.2 ( 13 -6 ) ] \\\end{array}$