Consider two firms, TD and LK$,$ that are each expected to pay the same $$3\mathrm{.}2$ million dividend every year in perpetuity. TD Corporation is riskier and has a cost of capital of $17\%.$ LK is not as shaky as TD$,$ so LK has a cost of capital of only $11\%.$ Assume that the market portfolio is not efficient. Both stocks have the same beta and CAPM would assign them both an expected return of $12\%.$ The alpha for TD Corporation is closest to:

Question $11$ options:

$-\mathrm{.}03$

$+\mathrm{.}03$

$+\mathrm{.}05$

$-\mathrm{.}05$

None of the above