LaForge Investment Group will use the risk adjusted rate of return to assist it in arriving at Jensen 's Measure for the year Its beta coefficient for the portfolio is 1 2, the risk free rate is 1 , and the market returned 9 During the year the portfolio returned 12 What is Jensen 's Measure ...

Required rate of return r Rf Rp H ...

LaForge Investment Group will use the risk-adjusted rate of return to assist it in arriving at Jensen's

Question:

LaForge Investment Group will use the risk-adjusted rate of return to assist it in arriving at Jensen's Measure for the year. Its for the is 1.2, the risk-free rate is 1%, and the market returned 9%. During the year the returned 12%. What is Jensen's Measure?
Beta Coefficient
Beta coefficient is a measure of sensitivity of a company's stock price to movement in the broad market index. It is an indicator of a stock's systematic risk which is the undiversifiable risk inherent in the whole financial system. Beta coefficient... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...