I ONLY NEED PART E ANSWERED. I'VE RESEARCHED AND ALL I FIND IS "ALPHA IS NOT PERSISTENT" WHICH I DONT UNDERSTAND - NEED BETTER EXPLANATION. THANKS! WILL RATE FOR GOOD EXPLANATION.

Estimate the equity cost of capital for XYZ Corp. You have the following data available regarding past returns:

Year	Risk-Free Return	Market Return	XYZ Return
2019	3%	6%	10%
2020	1%	-37%	-45%

a. What was XYZs average historical return?

b. Compute the markets and XYZs excess returns for each year. Estimate XYZs beta.

c. Estimate XYZs historical alpha.

d. Suppose the current risk-free rate is 3%, and you expect the markets return to be 8%. Use the CAPM to estimate an expected return for XYZ Corp.s stock.

e. How does your answer to part (c) affect your estimate? Explain.