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A security has an expected rate of return of 0.10 and a beta of 1.1. The market expected rate of return is 0.08 and the

A security has an expected rate of return of 0.10 and a beta of 1.1. The market expected rate of return is 0.08 and the risk-free rate is 0.05. The alpha of the stock is

a.

-1.7%.

b.

1.7%.

c.

-5.5%.

d.

5.5%.

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