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A security has an expected rate of return of 0.15 and a beta of 1.25. The market expected rate of return is 0.10, and the

A security has an expected rate of return of 0.15 and a beta of 1.25. The market expected rate of return is 0.10, and the risk-free rate is 0.04. The alpha of the stock is

Select one:

a. 1.7%.

b. 1.7%.

c. 8.3%.

d. 3.5%.

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