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Suppose the market risk premium is expected to be 8%, a stock has a beta of 1.15, and the T-bill rate is 3%. An analyst

Suppose the market risk premium is expected to be 8%, a stock has a beta of 1.15, and the T-bill rate

is 3%. An analyst believes the stock will provide a return of 17%. Using the CAPM, what would be

the stock's alpha?

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