Suppose portfolio a has an expected return of 8 volatility

Assignment Help Finance Basics
Reference no: EM13568858

Suppose Portfolio A has an expected return of 8%, volatility of 20%, and beta of 0.5. Suppose the market has an expected return of 10% and volatility of 25%. Finally, suppose the risk-free rate is 5%. What is Jensen's alpha for Portfolio A?

A.10.0%

B.1.0%

C.0.5%

D.15%

Reference no: EM13568858

Questions Cloud

The price-earnings ratio of general motors automobile : the price-earnings ratio of general motors automobile builder was 8 and the price-earnings ratio of microsoft computer
On march152011birkshire energy obtained a nine-month : on march152011birkshire energy obtained a nine-month working capital loan from the first national bank of oglesby. the
The failure of barings bank is a typical example of a lack : the failure of barings bank is a typical example of a lack in control pertaining to which one of the following risksa.
Suppose the beta of a firms assets is k and the tax rate : suppose the beta of a firms assets is k and the tax rate is 40. what is the debt-to-equity ratio if the beta of the
Suppose portfolio a has an expected return of 8 volatility : suppose portfolio a has an expected return of 8 volatility of 20 and beta of 0.5. suppose the market has an expected
Compute the number of scientific calculators and the number : thompson company produces scientific and business calculator thompson expects to sell 200000 scientific calculators and
Samos has to decide between the four payment plans : taylor would like to retire on december 31 2024 and take a trip around the world. in order to do this she feels she
Calculate the stock in the beginning cost of goods sold rs : calculate the stock in the beginning.cost of goods sold rs 72000 purchases rs 40000 closing stock rs 4000 direct wages
Condiser a kind of writing activity that you are good at it : condiser a kind of writing activity that you are good at. it might be texting your friends e-mailing people updating on

Reviews

Write a Review

Finance Basics Questions & Answers

  Briefly describe one 1 way the us financial markets impact

the u.s. financial system has many complexities and it is impacted by several environmental factors including federal

  If a bank is failing short of meeting its capital

if a bank is failing short of meeting its capital requirements by 1 million what three things can it do to rectify the

  Compute the cost of equity capital using capm

Compute the cost of equity capital using CAPM and dividend capitalization model and Calculate the after-tax cost of preferred stock for Bozeman-Western Airlines

  Design a needs assessment plan and identify three specific

training assessment is an important task for hr personnel. use the argosy university online library and textbooks to

  What will be the new price of the stock

Jersey Mining earns $9.50 a share, sells for $90, and pays a $6 per share dividend. The stock is spit two for one and a $3 per share cash dividend is declared.

  What would be the ideal policy for federal spending

What would be the ideal policy for federal spending on higher education (if the national objective is economic growth) Explain your reasoning for this type of policy, as well.

  What is the receivables turnover

Rise Above This, Inc., has an average collection period of 39 days. Its average daily investment in receivables is $44,800. Assume 365 days per year.

  The project is estimated to generate 5328000 in annual

phone home inc. is considering a new 6-year expansion project that requires an initial fixed asset investment of 5.876

  Describe and explain the relationship between goals of a

1 describe and explain the various forces that affect trading in international markets. what are the advantages and

  What are the bond-equivalent and discount yields

However, the treasurer wants to know the money market yield on this instrument to make it comparable to the T-Bills and CDs she has already bought. If the term of the instrument is 90 days, what are the bond-equivalent and discount yields on this ..

  What is the times interest earned ratio

Thayer, Inc. has earnings before interest and taxes of $10,350 and net income of $2,528.50. The tax rate is 35 percent. What is the times interest earned ratio?

  How much would you have to invest today to receive

How much would you have to invest today to receive?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd