Multiple Choice
Security A has an expected rate of return of 0.10 and a beta of 1.3. The market expected rate of return is 0.10, and the risk-free rate is 0.04. The alpha of the stock is
A) 1.7%.
B) −1.8%.
C) 8.3%.
D) 5.5%.
Correct Answer:
Verified
Correct Answer:
Verified
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