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Question
A portfolio has a Jensen's alpha of 0.82 percent, a beta of 1.40, and a CAPM expected return of 13.7 percent. The risk-free rate is 2.5 percent. What is the actual return of the portfolio?A. 15.5 percent
B. 16.1 percent
C. 16.8 percent
D. 19.6 percent
E. 21.9 percent
Answer
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