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Security A has an expected rate of return of 12% and a beta of 1.1. The market expected rate of return is 8%, and the

Security A has an expected rate of return of 12% and a beta of 1.1. The market expected rate of return is 8%, and the risk-free rate is 5%. The alpha of the stock is ________.

Select one:

a.8.7%

b.5.5%

c.-1.7%

d.3.7%

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