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CONSIDER the following two stocks (3) 3. (10 points) Consider the following two stocks A and B in a portfolio. Stock A has a beta

CONSIDER the following two stocks (3)
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3. (10 points) Consider the following two stocks A and B in a portfolio. Stock A has a beta of 1.20 and a alpha of 2.60%. Stock B has a beta of 1.80. The weights of A and B in the portfolio are 30% and 70%. The portfolio has a beta of 1.62 and alpha of 3.6%. The risk- free rate is 5% and market risk premium is 2%. What is the alpha of stock B according to the CAPM

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