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The market is expected to return 10% in the coming year, and a security within it has a beta of 1.2. If the security returns

The market is expected to return 10% in the coming year, and a security within it has a beta of 1.2. If the security returns 15%, its alpha would be

a) 3%

b) 5%

c) 15%

d) Insufficient information.

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