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After much detailed research into State Street Corp (STT), you estimate its return during the next year will be 18%. STT has a beta of
After much detailed research into State Street Corp (STT), you estimate its return during the next year will be 18%. STT has a beta of 1.58, the annual risk-free rate of return is 2%, and the expected return on the market for the coming year is 9%. Using CAPM as the model for returns, what alpha do you expect STT to earn during this year? O 2.51% O 3.66% O 1.75% 4.94%
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