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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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