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Macy's (M) has an expected return of 9.1%. The company's beta is 0.61, the risk-free rate is 3.0%, and the market risk premium is 5.5%.

Macy's (M) has an expected return of 9.1%. The company's beta is 0.61, the risk-free rate is 3.0%, and the market risk premium is 5.5%. What is Macy's expected alpha?

A.

6.1%

B.

3.6%

C.

2.7%

D.

0.6%

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