1. Assume the following: Realized risk-free rate, rf = 3% Realized return of the market, rM = 11% Beta for Stock i, i = 0.90 Realized return for Stock i over the entire year is 10% (i.e. ri = 10%) At the end of the year, what is the stocks realized alpha, ? (i.e. return above or below what CAPM anticipated) What does this tell you about the impact on stock Is value resulting from managerial actions and/or other firm-specific events?