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Consider the single-index model. The alpha of a stock is 1%. The return on the market index is 12%. The risk-free rate of return is

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Consider the single-index model. The alpha of a stock is 1%. The return on the market index is 12%. The risk-free rate of return is 4%. The stock earns a return that exceeds the riskfree rate by 10%, and there are no firm-specific events affecting the stock performance. The of the stock is Multiple Choice 1.13. 0.10 0.82 0.60 1.27

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