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You consider buying a share of stock at a price of $25. The stock is expected to pay a dividend o $1.50 next year and
You consider buying a share of stock at a price of $25. The stock is expected to pay a dividend o $1.50 next year and you expect to sell the stock in one year for $28. The stocks beta is 1.1, Rf is 6% and E(rm)=16%. What is the stocks abnormal return(alpha)?
1%
2%
-1%
-2%
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