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You've analyzed IBM's stock and expect it to deliver a return of 13.5% over the next year. The stock has a beta of 0.8. The

You've analyzed IBM's stock and expect it to deliver a return of 13.5% over the next year. The stock has a beta of 0.8. The risk-free rate is 2.5% and the expected market risk premium is 6%. What is the security's expected alpha?

6.2

6.8

7.3

4.8

5.5

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