Multiple Choice
A security has an expected rate of return of 0.13 and a beta of 2.1. The market expected rate of return is 0.09, and the risk-free rate is 0.045. The alpha of the stock is
A) −0.95%.
B) −1.7%.
C) 8.3%.
D) 5.5%.
Correct Answer:
Verified
Correct Answer:
Verified
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