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A well-diversified portfolio P has an expected return of 5% and a beta of 1.5. The risk-free rate is 2.2% and the expected return on

A well-diversified portfolio P has an expected return of 5% and a beta of 1.5. The risk-free rate is 2.2% and the expected return on the S&P 500 is 8%.

What is the portfolio's expected alpha?

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