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include work/formulas 2. The common stock of Alpha, Inc. was selling for $20 per share one year ago. Today, the stock price is $22, and
include work/formulas
2. The common stock of Alpha, Inc. was selling for $20 per share one year ago. Today, the stock price is $22, and it just paid a dividend of $1.00 per share. a) What was the stock's rate of return? b) The Beta of Alpha, Inc. is 1.4. The risk-free rate is 3%, and the market risk premium is 8%. Draw the Security Market Line, and plot the stock in the graph. Be sure to label the axes and relevant points. Was this a good investment Step by Step Solution
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