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An investor invested in a stock with a beta of 1.2 last year and earned a return of 8.5%. The market return this year was
An investor invested in a stock with a beta of 1.2 last year and earned a return of 8.5%. The market return this year was 6% and the risk-free rate was 4%. Find the alpha value and state whether it outperformed or underperformed the market.
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