You are provided some data about the market: The expected return of the market portfolio is 12.8%, the market's volatility is 16.4%, and the risk-free rate is 1.6%.

If the beta of LEVI is 1.14, according to the CAPM, LEVI should have some expected return. However, you think that LEVI has an expected return of 13.4%.

What do you think is the alpha of LEVI?

{Give your answer as a percentage with 2 decimals, e.g., if the answer is 0.0345224 (or 3.45224%) , enter 3.45 as your answer.}

Hint: the alpha, when looking at expected returns, is the difference between what you think the expected is, and what the model is telling you.

The alpha, when looking at realized returns, is the difference between the realized return and what it should have been, according to the model (using the realized return of the factor(s)).