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20. The market price of stock A is $27.05 per share. The annual returns of the market portfolio and stock A are 12% and 13%,

20. The market price of stock A is $27.05 per share. The annual returns of the market portfolio and stock A are 12% and 13%, respectively. The risk-free rate is 1% and the company's beta is 1.3. Assuming CAPM is the correct model, what is the alpha of stock A?

a. -2.30%

b. 3.60%

c. 2.30%

d. -3-60%

e. Insufficient information

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