A portfolio manager is considering the inclusion of Garmin Ltd (GRMN) in his portfolio. The manager gathers the following information:

GRMN current stock price is $53.12.

The analysts estimate of GRMNs intrinsic value is $56.00.

In addition to the full correction of the difference between GRMNs stock price and the estimated intrinsic value, the analyst forecasts additional price appreciation of $4.87 and a cash dividend of $0.28 over the next year.

The required rate of return for GRMN is to be estimated using the CAPM with the following inputs: risk-free rate of 3.35%, an equity risk premium of 4.5%, and a beta of 1.30.

Now, assume the year passes, and at year-end, the portfolio manager gathers the following additional information:

Over the year, the realized return for GRMN was 8.9%.

The realized rate of return on stocks of similar risk during the year was negative 10.4%.

a) What is the portfolio managers expected holding period return, in percent, for GRMN over the next year?

b) What is the portfolio managers estimate of ex-ante alpha, in percent, for GRMN over the next year?

c) What was the ex-post alpha, in percent, for GRMN over the year?