The following table contains information on the expected return, beta, market value of equity, and book value of equity for 9 stocks:

	NFLX	TSLA	DIS	PFE	PSX	XEL	TGT	SBUX	SQ
E[r]	9.8%	5.4%	12.6%	7.0%	16.3%	19.1%	15.2%	11.2%	14.1%
Beta	2.0	0.4	0.7	0.3	1.2	0.2	0.6	0.9	2.2
Market Value of Equity	132.4	73.8	255.3	206.4	53.0	31.6	79.3	99.8	28.3
Book Value of Equity	5.2	14.9	88.8	43.4	24.9	12.2	15.3	5.8	1.1

a. What is the expected return on an equally-weighted portfolio comprised of the three stocks with the largest book-to-market ratios?

b. Suppose the market risk premium is 10.0% and the risk-free rate is 1.0%. What is the alpha on an equally-weighted portfolio of the three smallest cap stocks?