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A portfolio has a beta = 1.5. Last year the portfolio had a return of 14%. Last year the market return was 11% and the

A portfolio has a beta = 1.5. Last year the portfolio had a return of 14%. Last year the market return was 11% and the risk-free rate of return was 3%. What was the "alpha" of the portfolio?

-2.5%

-1%

+1%

+3%

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