Calculate Jensen's alpha using the following information for an asset: Asset Return: 1 2 % Risk -

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Question:

Calculate Jensen's alpha using the following information for an asset:

Asset Return:

12 %

Risk

-

Free Rate:

3 %

Beta:

1.2

Market Return:

10 %

.

Explain the difference between active return and alpha.

Related Book For answer-question

Managerial Economics

ISBN: 978-0324588866

12th edition

Authors: Mark Hirschey

Posted Date: Feb 10, 2024 01:39 PM

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Calculate Jensen's alpha using the following information for an asset: Asset Return: 1 2 % Risk -

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Lets start with calculating Jensens alpha an indicator of the superior or inferior performance of a ... View the full answer

Managerial Economics

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