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Assume that stock ABC is currently trading at $75.84/share. You expect it to increase to $97/share over the next year. ABC's beta is 1, and
Assume that stock ABC is currently trading at $75.84/share. You expect it to increase to $97/share over the next year. ABC's beta is 1, and it pays no dividends. You expect the market to return 12% over the next year, and T-Bills will return 2% over the next year. What do you anticipate ABC's alpha to be? Enter your answer in percent form without the percent sign (e.g., for 5% put 5 not 0.05), and round to the nearest decimal place.
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