An investor gathers the following information about a portfolio and the market.
| | Return Standard | Deviation of Returns | Beta |
|----------------|------------------|-----------------------|------|
| Portfolio | 11% | 4% | 1.2 |
| Market | 10% | 3% | 1.0 |
If the risk-free rate is 3%, Jensen's alpha for the portfolio is: | Chartered Financial Analyst Level 1 Quiz - LeetQuiz
Chartered Financial Analyst Level 1
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An investor gathers the following information about a portfolio and the market.
Return Standard
Deviation of Returns
Beta
Portfolio
11%
4%
1.2
Market
10%
3%
1.0
If the risk-free rate is 3%, Jensen's alpha for the portfolio is: