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For Collins's Costly Cosmetics, LLP., the analyst Derek, using monthly EXCESS returns over the past 7 years, has estimated the Single Factor model, finding the
For Collins's Costly Cosmetics, LLP., the analyst Derek, using monthly EXCESS returns over the past 7 years, has estimated the Single Factor model, finding the market beta to be 1.3and has forecasted that the expected alpha is 1.84\%, and expected market (excess) return is 2.6%. Given this information, what is the Expected (excess) Return for Collins's Costly Cosmetics, LLP.? Select one: a. 3.00% b. 1.84% c. 5.22% d. 2.23% e. 3.38% f. insufficient information to determine g. 2.62%
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