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Valuation & Risk Models
Valuation & Risk Models
Medium
Using the Capital Asset Pricing Model (CAPM), Clearwater Fund has a beta of 1.35, the risk-free rate is 3.5%, and the expected market return is 9.5%. If the fund's actual return over the past year was 12.2%, what is Jensen's alpha?
A
0.60%
B
2.70%
C
-0.60%
D
3.10%
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Tags
#capm
#jensens-alpha
#performance-measurement
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