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The return on US T-Bills is 4%, inflation is 2% and the risk premium of the S&P 500 is 16%. If a stock has a

The return on US T-Bills is 4%, inflation is 2% and the risk premium of the S&P 500 is 16%. If a stock has a beta of 1.2, what is the alpha for the stock if the actual return is 26.4%? A. 4% B. 3.2% C. -3.2% D. 2.8% E. 1.8% (Please Show Work/Formula)

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