Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

CFA Events Calendar

View full calendar

Recommended Discussions

See how our partners can help you ace your CFA exams.

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.
AnalystPrep
CFA Question Bank and Study Notes at https://analystprep.com 
Register today for 120 free practice questions

CFA Level 1 Question of the Week - Portfolio Management 6 votes

-0.2% and -3.6% respectively; Portfolio A has performed better than Portfolio B.
66% 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.
33% 2 votes

Comments

Sign In or Register to comment.