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Author Question: One year ago, Matt bought 100 shares of ACE Corp. stock for $5,619 including commission. He is about ... (Read 98 times)

ega16

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One year ago, Matt bought 100 shares of ACE Corp. stock for $5,619 including commission. He is about to sell the ACE 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. Based on Jensen's measure, did Matt make a good purchase?


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Marked as best answer by ega16 on Mar 29, 2022

Preeti

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ega16

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Reply 2 on: Mar 29, 2022
YES! Correct, THANKS for helping me on my review


helenmarkerine

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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