If RF 6 , RM 12 , (beta) 1 5 and the portfolio earned a return of 16 , then the Jensen's alpha of shows that the portfolio performance is A 1 superior B 1 consistent with the risk taken (i e neither inferior or superior) C 0 inferior D 0 consistent with the risk taken (i e neither inferior or superior)

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Question: If RF = 6%, RM = 12%, (beta) = 1.5 and the portfolio earned a return of 16%, then the Jensen's alpha of _____ shows

If RF = 6%, RM = 12%, (beta) = 1.5 and the portfolio earned a return of 16%, then the Jensen's alpha of _____ shows that the portfolio performance is _______:

A. 1%; superior.
B. 1%; consistent with the risk taken (i.e. neither inferior or superior).
C. 0%; inferior.
D. 0%; consistent with the risk taken (i.e. neither inferior or superior).

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