One year ago, MATT BOUGHT 100 shares of ACE corp. stock for5619 including commission. he is about to sell the ace STOCK FOR 6528 NET OF COMMISSIONS. when he made the purschase 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