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One year ago, Matt bought 100 shares of ABC Corp. stock for $5,619 including commission....

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One year ago, Matt bought 100 shares of ABC Corp. stock for $5,619 including commission. He is about to sell the ABG stock for $6,528 net of commissions. When he made the purchase the S\&P 500 index was at 907 ; now it is 1070 . The beta of ACE stock is 0.98, and the market's risk-free rate is 4.0%. No dividends were paid. b. Rationalise the type of risk measured by each of the following measures. Also identify the factor in each formula that determines the type of risk that is being measured. (i) Jensen's measure (ii) Sharpe's measure (iii) Treynor's measure (6 marks)

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