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You are analyzing a stock that currently sells for $100. The stock is expected to pay a dividend of $3.03 and sell for $105 in

  1. You are analyzing a stock that currently sells for $100. The stock is expected to pay a dividend of $3.03 and sell for $105 in one year. If the fair return on the stock is 8.75%, what is the stock's alpha? Convert to a percent and then use 2 decimal places.
Current Price $100 Expected Price in 1 year $119.67
Beta 1.4 Expected Dividend $4.09
Market Risk Premium 5.52% 10-year T Bond yield 0.679%

What is the stock's holding period return? Convert to a percent and then use 2 decimal places.

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