Question: Your portfolio returned 12.8% last year, with a beta equal to 1.4. The market return was 9.3%, and the risk-free rate 4.1%. Did you earn

Your portfolio returned 12.8% last year, with a beta equal to 1.4. The market return was 9.3%, and the risk-free rate 4.1%. 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.)

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!

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...

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 10.3% 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...

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...

Your portfolio returned 13% last year, with a beta equal to 1.5. The market return was 10%, and the risk-free rate 4.0%. Did you earn more or less than the required rate of return on your portfolio?...

Your portfolio returned 11.6% last year, with a beta equal to 1.6. The market return was 9.0%, and the risk-free rate is 3.4% Did you earn more or less than the required rate of return on your...

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...

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...

Small Corporation purchased and placed in service the following 100% business-use assets (all of the assets were purchased new). Assume that Small purchased these assets in Year 1, when 50% bonus...

Read through the following items and determine what the taxable income is. For any amount that is not taxable or tax deductible explain why it is not. Enter your answers in the shaded boxes. Examples...

z: Cost Management, Techniques and Strategy i Which of the following statements about budgeting is not true? ts Multiple Choice 0 2 0 1 2 Budgets create standards for performance evaluation....

10) For a bond that pays cash interest (i.e., not a zero coupon bond), YTM is (a) always equal to the coupon rate (b) always equal to the current yield (c) is always less than the coupon rate (d) can...

3. Contrast relational contexts in organizations

2. Describe ways in which organizational culture is communicated

1. Describe and compare approaches to managing an organization