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A stock has a beta of 0.5. The stock's actual expected return is 6%. Currently, the risk-free rate is 1% and the market risk premium
A stock has a beta of 0.5. The stock's actual expected return is 6%. Currently, the risk-free rate is 1% and the market risk premium is 5%. What is the alpha of the stock according to the CAPM?
Note: Write your answer in decimal (do not round). For example, you should write 0.003 instead of 0.3%.
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