Your advisor is pitching a stock to you that is currently priced at $16 a share. The advisor says that if you hold the stock for a year, the stock will pay a dividend of $1.00 and you can expect to sell the stock at the end of the holding period for $19. The stock's beta is 1.1, the risk free rate is 10%, and the expected return of the market is 20%. What is the stock's expected alpha?

Multiple Choice

• 11%

• 6%

• 4%

• 0%