Consider the (excess return) index-model regression results for stocks A. The risk-free rate over the period was 6%, and the markets average return was 14%. Performance is measured using an index model regression on excess returns: 1% + 1.2(r_M - r_f ) with an R2 of 0.576 and residual standard deviations of 10.3%. What is the alpha of Stock A?

-5%

10.3%

1.2%

1%