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At the beginning of 2018, the shares of Alba Corporation traded at $120 each, and closed the year in December at $80. GM paid a

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At the beginning of 2018, the shares of Alba Corporation traded at $120 each, and closed the year in December at $80. GM paid a $4.00 dividend on each share during the year. a. What was the rate of return that shareholders earned on GM shares during 2018? b. The yield on long-term US Treasuries at the beginning of 2018 was 7% and you require a 7% risk premium for this stock. What is your required rate of return the bota return)? C. Using this required rate of return, what is the abnormal rate of return (alpha) for the year? Soloct one: a. ROR= 3%, RR= 4%, Alpha=-4% b. ROR= 30%, RR= -14%, Alpha- 44% c. ROR -30% RR= 14% Alphas -44%

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