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Chee Chew's portfolio has a beta of 1.25 and earned a return of 13.9% during...

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Accounting

Chee Chew's portfolio has a beta of 1.25 and earned a return of 13.9% during the year just ended. The risk-free rate is currently 3.5%. The return on the market portfolio during the year just ended was 11.1%.
a. Calculate Jensen's measure (Jensen's alpha) for Chee's portfolio for the year just ended.
b. Compare the performance of Chee's portfolio found in part a to that of Carri Uhl's portfolio, which has a Jensen's measure of -0.24. Which portfolio performed better? Explain.
c. Use your findings in part a to discuss the performance of Chee's portfolio during the period just ended.
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