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ChihuahuaCorporation is expected to pay a $1.5 million dollar dividend every year in perpetuity. It has a cost of capital of 15%. Assume that the

ChihuahuaCorporation is expected to pay a $1.5 million dollar dividend every year in perpetuity. It has a cost of capital of 15%. Assume that the market portfolio is not efficient. Based on CAPM, Chihuahua has an expected return of 12%. The alpha for Chihuahua is closest to __________. (Points : 10)
+2%

-5%

-3%

+3%

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