Stock XYZ has an expected return of 13% and risk of = 1.1. Stock ABC has expected return of 14% and = 1.9.

Stock XYZ has an expected return of 13% and risk of β = 1.1. Stock ABC has expected return of 14% and β = 1.9. The market\'s expected return is 10% and risk free rate = 5%.

What is the alpha of each stock? Plot the SML and each stock\'s risk-return point on one graph. Show the alphas graphically.