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CFA Level 1 Question of the Week - Portfolio Management

Two portfolios have the following characteristics: 

Portfolio
Return
Beta
A
8%
0.7
B
7%
1.1


Given a market return of 10% and a risk-free rate of 4%, calculate Jensen's Alpha for both portfolios and comment which portfolio has performed better.

CFA Level 1 Question of the Week - Portfolio Management 5 votes

-0.2% and -3.6% respectively; Portfolio A has performed better than Portfolio B.
80% 4 votes
-0.2% and -3.6% respectively; Portfolio B has performed better than Portfolio A.
0% 0 votes
0.2% and 3.6% respectively; Portfolio B has performed better than Portfolio A.
20% 1 vote
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