Suppose that you are considering the purchase of a share of stock currently priced at $40. The stock is expected to pay a dividend of $1.75 next year, and you expect to sell the stock in 1 year for $43. The stock's beta is 1.0, r_f is 4%, and E[r_m] = 13%. What is the stock's alpha or abnormal return?

A.) -1.13%

B.)-0.54%

C.) 0.04%

D.) 1.13%