Question: Consider the following returns for Security J. Security K, and the Market: Year Security K 12% 1 2 Security 10% 14% 12% Market 6% 10%
Consider the following returns for Security J. Security K, and the Market: Year Security K 12% 1 2 Security 10% 14% 12% Market 6% 10% 8% 3 16% 14% 4. 8% 10% 4% 5 20% 22% 16% Assume that expected returns are modeled as average past returns, and required returns are modeled using CAPM. The risk-free rate was 5.0%. Given this information, determine Jensen's Alpha for Security J. Enter your answer is decimal format, to 4-decimal places, truncated. For example, if your answer is 12.236%, entet "0.1223
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