Just checking my answers for the following question.

Please determine an estimate of the market beta for Your Mom Inc. against the S&P500 Market portfolio.

1. If the risk free rate, rF, is 2.0% and the expected market risk return premium on the USA Market Portfolio E(MRP) = 6.0%, determine the CAPM estimate of the required rate of return for an investment in Your Mom Inc. equity.
2. Suppose that after analyzing the firm you estimate an expected rate of return for Your Mom Inc. equity over the next year of 6.5%. Do you expect Your Mom Inc. to have a positive or negative alpha?
3. What would you say to your friends about Your Mom Inc. if they ask you about it as an investment possibility for the coming year?
4. Suppose one year from now, the S&P500 has produced a return of 10.0% and Your Mom Inc. has produced a return of 8.5%, what is the ex-post (realized) alpha of Your Mom Inc. stock for the year?