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You have privileged information about a firm and according to your analysis, shares of SVXY should increase in value by 15.7% next year. Meanwhile, the
You have privileged information about a firm and according to your analysis, shares of SVXY should increase in value by 15.7% next year. Meanwhile, the market is expected to rise by 15.8%, and the risk-free rate is 1.7%. If the beta of SVXY is 0.91, what would be the alpha of the asset?
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