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8) Using the single index model, what is the alpha of a stock with beta of 1.3, a market return of 14%, risk free rate

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8) Using the single index model, what is the alpha of a stock with beta of 1.3, a market return of 14%, risk free rate of 4% and the actual return of the stock is 14%? A) 1.80% B) -3.00% C) -1.37% D) 0.75% E) 2.11%

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