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1. You consider buying a share of stock at a price of $25. The stock is expected to pay a dividend of $1.50 next

1. You consider buying a share of stock at a price of $25. The stock is expected to pay a dividend of $1.50 next year, and your advisory service tells you that you can expect to sell the stock in 1 year for $30. The stock's beta is 1.1, rf is 6%, and market risk premium is 10%. What is the stock's alpha?

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