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2. Security A has an expected rate of return of 14% and a beta of 1.25. The market expected rate of return is 13% and
2. Security A has an expected rate of return of 14% and a beta of 1.25. The market expected rate of return is 13% and the risk-free rate is 4%. The alpha of the stock is: A. 1.25% B. 0.25% C. 0% D. 0.25% E. 1.25%
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