1. If a stock has a(Alpha)=0.003, b(Beta)=1.3,

Using the market model (eq. 7.4), find the expected percent return for the above stock if the market return is expected to be 1% and the risk free rate is 1%

Please use 5 decimal places in your response

2.What is a stock's realized abnormal return if the stock had a 3% return and the stock had a Beta=1.28, an Alpha=0 and the excess market return was 3.6%. assume the risk free rate is 0%.

Please use 5 decimal places in your response. Please write negative returns using the "-" symbol, so a negative 1% return would be written as -.01