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Your market model has an intercept of 4%, and you forecast a market return of 10%. If your security has a beta of 1.3 and

Your market model has an intercept of 4%, and you forecast a market return of 10%. If
your security has a beta of 1.3 and has an actual return of 12%, the error term is
(a) -8.3%. (b) -5.0%. (c) 3.2%. (d) 4.6%.
please show work how its done

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