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Question 5 The alpha of MSFT is 0 . 0 4 5 6 . The beta of MSFT is 1 . 0 4 2 .

Question 5
The alpha of MSFT is 0.0456.
The beta of MSFT is 1.042.
The expected excess returns of the market E(RM) is 0.0541.
Compute the expected excess returns of MSFT.
Round your answer to 5 decimal places.
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