Suppose the risk-free return is 6%. The beta of a managed portfolio is 1.5, the alpha is 3%, and the average return is 18%. Based on Jensen's measure of portfolio performance, you would calculate the return on the market portfolio as
A. 12%.
B. 14%.
C. 15%.
D. 16%.
A. 12%.
3% = 18% [6% + 1.5(x 6%)]; x = 12%.
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List the three directions of communication and describe the types of communication that occur in each. Explain one problem that can occur in each direction
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