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The stock of Arbor Pet Trees (APT) is priced based on the given systematic risk factors. Estimated sensitivities to these risk factors are given by

The stock of Arbor Pet Trees (APT) is priced based on the given systematic risk factors. Estimated sensitivities to these risk factors are given by the betas of the regression

R_APT R_rf = _creditR_credit + _value R_value + +

Factor	Risk Premium	Beta
Credit Risk	6.3%	1
Valuation Risk	4.5%	0.4
Risk-free rate	2.5%

If the actual return is 9.8%, what is the value of alpha?

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