Question: Problem-solving: Calculate the capital asset pricing model's required return (k) and Jensen's measure of excess return, alpha, for the following investment projects, then rank-order them

Problem-solving: Calculate the capital asset pricing model's required return (k) and Jensen's measure of excess return, alpha, for the following investment projects, then rank-order them from best to worst. Assume that the risk-free return, if, is 6% and the market return, im = 12%.

Project Beta Expected Return

Project	Beta	Expected Return
A	1.0	14%
B	1.2	20%
C	1.6	30%
D	0.8	10%

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