medium · FRM Part 1 Foundations of Risk Management
An analyst is evaluating a project with an expected return of 14%. The risk-free rate is 3%, the market risk premium is 6%, and the project's beta is 1.5.
According to the Capital Asset Pricing Model (CAPM), what is the project's Jensen's Alpha?
- +2.0%
- +11.0%
- +5.0%
- -2.0%
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