What is the value of jensen alpha

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Problem 1: A portfolio has a beta of 1.30 and an actual return of 15.5%. The risk-free rate is 3.5% and the market risk premium is 8.2%. What is the value of Jensen's alpha?

Multiple Choice

Option 1:
1.14%

Option 2: .86%

Option 3:
1.23%

Option 4:
1.01%

Option 5:
1.34%

Reference no: EM132668614

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