21. If RF = 4%, RM = 10%, (beta) = 1.5 and the portfolio earned a return of 16%, then the Jensen's alpha of _____ shows that the portfolio performance is _______:

A. 0%; consistent with the risk taken (i.e. neither inferior or superior).

B. 0%; inferior.

C. 3%; consistent with the risk taken (i.e. neither inferior or superior).

D. 3%; superior.

37. Suppose there is an industry with annual sales of $60 million and three firms A, B, and C operating in that industry. The sales of the firms are $30 million, $15 million, and $15 million, respectively. The HHI for the industry is ______, which indicates an environment of ______.

A. 900; high competition

B. 900; low competition

C. 3,750; high competition

D. 3,750; low competition

38. Suppose there is an industry with annual sales of $25 million and four firms A, B, C and D operating in that industry. The sales of the firms are $8 million, $7 million, 5 million and 5 million, respectively. What is the Concentration ratio CR1?

A. 20%

B. 28%

C. 32%

D. 40%