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A security has an expected rate of return of 10% and a beta of 1.1 . The market expected rate of return is 8% and

image text in transcribed A security has an expected rate of return of 10% and a beta of 1.1 . The market expected rate of return is 8% and the risk-free rate is 5%. The alpha of the stock is a. 8.3%. b. 1.7%. c. 5.5%. d. 1.7%

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