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Consider the single-index model. The alpha of a stock is 0%. The return on the market index is 10%. The risk-free rate of return is

image text in transcribed Consider the single-index model. The alpha of a stock is 0%. The return on the market index is 10%. The risk-free rate of return is 3%. The stock earns a return that exceeds the risk-free rate by 11%, and there are no firm-specific events affecting the stock performance. The of the stock is 1.57 0.75 1.17 1.33 1.50

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