Capital asset pricing model’s required return (k) and Jensen’s measure

jagguarpaw January 17, 2017 0 Comments

Question: Problem-solving: Calculate the capital asset pricing…

 

Problem-solving: Calculate the capital asset pricing model’s required return (k) and Jensen’s measure of excess return, alpha, for the following investment projects, then rank-order them from best to worst. Assume that the risk-free return, if, is 6% and the market return, im = 12%.