You run a regression of the excess returns of ABC stock on the excess returns of the market portfolio M and obtain an output:

RAbc - Rf= -.04 + 1.0 (RM-Rf) + error

The expected return of the market portfolio is 10% and the risk-free rate is 5%.

1. What ABC stock's Alpha?
2. What is ABC stock's expected return?
3. If you are a fund manager and you want to build your portfolio such that it has an alpha of 2% and a beta of zero. What must be your portfolios weights on ABC stock, the market, and risk-free asset?

**This is all the information that was given**