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You have run a regression of stock returns against market returns, using monthly data over the last three years for Golden Books. The regression equation

You have run a regression of stock returns against market returns, using monthly data over the last three years for Golden Books. The regression equation is reproduced below:

ReturnsGolden Books = 1.31% + 0.95 (ReturnsS&P 500) Assuming that the average riskfree rate (yearly)during the period was 6.4%, estimate the Jensens alpha for this stock, in annualized terms.

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