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Assume that stock YYZ is currently trading at $81.42/share. You expect it to increase to $92/share over the next year. YYZ's beta is 1.5, and
Assume that stock YYZ is currently trading at $81.42/share. You expect it to increase to $92/share over the next year. YYZ's beta is 1.5, and it pays no dividends. You expect the market to return 9% over the next year, and T-Bills will return 2% over the next year. What do you anticipate YYZ'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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