QUESTION 12
William Gates III gives me $8,000,000.00 to invest. At the end of the first year, I report to William Gates III a loss of 27% for the year. However, at the
end of the second year, I report a gain of 42% for the year. The actual average annual return on the portfolio was ____ %. (percent, rounded three
places after the decimal)
QUESTION 13
We expect a return on the market of 11.900% and a risk free rate of 4.100%. Using data over the past five years, we measure the rate of return on
Cerigo Olive Oil as 15.369% with a beta of 2.61. Therefore we calculate Jensen's Alpha on Cerigo Olive Oil as ____ %. (percent, rounded three
places after the decimal)
