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If the risk-free asset return is 0.02, the expected return on the market portfolio is 0.071, the actual return on a stock is 0.052, and
If the risk-free asset return is 0.02, the expected return on the market portfolio is 0.071, the actual return on a stock is 0.052, and its beta is 2.7. What is the Jensen's alpha (the difference between E(Ri) and actual return) of the stock? Use three decimal places in your answer.
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