Question: If RF = 4%, RM = 9%, (beta) = 1.5 and the portfolio earned a return of 13.5%, then the Jensen's alpha of _____ shows

If RF = 4%, RM = 9%, (beta) = 1.5 and the portfolio earned a return of 13.5%, then the Jensen's alpha of _____ shows that the portfolio performance is _______:

A. 0%; inferior.

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

C. 2%; superior.

D. 2%; consistent with the risk taken (i.e. neither inferior or superior).

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