A stock has a return of 16.18 percent and a beta of 1.47. The market return is 10.65 percent and the risk-free rate is 3.20 percent. What is the Jensen-Treynor alpha of this stock?

A. ?1.12 percent
B. 1.38 percent
C. 1.59 percent
D. ?0.17 percent
E. 0.66 percent


Answer: B

Business

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