a) Hazlett, Inc. generated actual returns of 15%. The risk-free rate of interest, kRF, is 6 percent. The overall stock market has an expected return of 12 percent. Hazlett, Inc. has a beta of 1.2. What is the Alpha of Hazlett, Inc. stock?

b) Stock B generated actual returns of 10% during the year. The risk-free rate is 5 percent. Stock A has a beta = 1.0 and Stock B has a beta = 1.4. Stock A has a required return of 11 percent. What is Stock Bs Alpha?