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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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