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Security A has an expected rate of return of 12% and a beta of 1.1. The market risk premium is 8%, and the risk-free rate
Security A has an expected rate of return of 12% and a beta of 1.1. The market risk premium is 8%, and the risk-free rate is 5%. The alpha of the stock is _________.
A. -1.8%
B. 5.5%
C. 3.7%
D. 8.7%
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Securitisation Derivatives A Practioner's Handbook
Authors: Mark Aarons, Vlad Ender, Andrew Wilkinson
1st Edition
1119532272, 978-1119532279
