Question: Your portfolio returned 10.8% last year, with a beta equal to 1.8. The market return was 8.2%, and the risk-free rate 5.7%. Did you earn

Your portfolio returned 10.8% last year, with a beta equal to

Your portfolio returned 10.8% last year, with a beta equal to 1.8. The market return was 8.2%, and the risk-free rate 5.7%. Did you earn more or less than the required rate of return on your portfolio? (Use Jensen's measure.) The Jensen's measure for your portfolio is %. (Round to two decimal places.) You earned the required rate of return on your portfolio. (Select from the drop-down menu.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Your portfolio returned 10.3% last year, with a beta equal to 1.8. The market return was 7.2%, and the risk-free rate 4.4%. required rate of return on your portfolio? (Use Jensen's measure.) Did you...

Your portfolio returned 14.1% last year, with a beta equal to 1.8. The market return was 11.0%, and the risk-free rate 5.1%. Did you earn more or less than the required rate of return on your...

1. Congratulations! Your portfolio returned 9.4% last year, 1.9% better than the market return of 7.5%. Your portfolio had a standard deviation of earnings equal to 19%, and the risk free rate is...

John Reardon purchased 100 shares of Tomco Corporation in December 2013 at a total cost of $1,762. He held the shares for 15 months and then sold them, netting $2,500. During the period he held the...

Your portfolio returned 13.0% last year, with a beta equal to 1.5. The market return was 10.0%, and the risk-free rate 4.0%. Did you earn more or less than the required rate of return on your...

K Your portfolio returned 11.3% last year, with a beta equal to 1.7. The market return was 8.2%, and the risk-free rate 4.8%. Did you earn more or less than the required rate of return on your...

Your portfolio returned 11.4% last year, with a beta equal to 1.3. The market return was 8.2%, and the risk-free rate 5.9%. Did you earn more or less than the required rate of return on your...

exactly, more than or less than Your portfolio returned 13.0% last year, with a beta equal to 1.5. The market return was 10.0%, and the risk-free rate 4.0%. Did you earn more or less than the...

exactly, more than or less than Your portfolio returned 13.5% last year, with a beta equal to 1.3. The market return was 10.7%, and the risk-free rate 5.2%. Did you earn more or less than the...

Your portfolio returned 10.8% last year, with a beta equal to 2.1. The market retum was 8.5%, and the risk-free rate 5.4%. Did you sam more or less than the required rate of return on your portfolio?...

P3-48 A parallel-plate capacitor of width w, length L, and separation d has a solid dielectric slab of permittivity in the space between the plates. The capacitor is charged to a voltage V, by a...

On October 2, 2010, The Coca-Cola Company acquired the 67 percent of CCEs North American business that was not already owned by the company for consideration of $6.84 billion that included: The...

Use the following contingency table:

2. Portfolio choice [5 pts] Ebru is a mean-variance optimising investor with risk-aversion A = 6. Suppose Ebru can choose two stocks for her investment portfolio. The first stock has an expected...

Which situational supervisory business style (Chapter 7) was Beth using to set the policy?

What type of communications (Chapter 5) were used in this case? What was the major barrier to communications?

What is the role of perception (Chapter 2) and attitudes and values (Chapter 3) in this case?