The risk free rate, average return of portfolio P and average return of the market portfolio are, respectively, 4 , 8 , and 8 The estimated standard deviation of the market portfolio is 12 , and the estimated nonsystematic risk of portfolio P is 15 The Jensen index for portfolio P is 1 What can you...

The Jensen Index indicates in principle how good the performance of a portfolio is Since for th ...

The risk-free rate, average return of portfolio P and average return of the market portfolio are, respectively,

Question:

The risk-free rate, average return of P and average return of the market are, respectively, 4%, 8%, and 8%. The estimated standard deviation of the market is 12%, and the estimated nonsystematic risk of P is 15%. The Jensen index for P is 1%. What can you say about the performance of P?
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...