Question: 2. The following data is provided on two stocks, IBM and WMT, the market risk premium, and the risk-free rate. Stock Actual Stock Return Market

The following data is provided on two stocks, IBM and WMT, the market risk premium, and the risk-free rate.

Stock	Actual Stock Return	Market Risk Premium	Risk-free Rate	Stock Beta
IBM	5.0%	6.0%	2.0%	0.9
WMT	11.0%	6.0%	2.0%	1.3

What is the abnormal return (i.e., alpha) for stock WMT?

Enter your answer in the following format: 0.1234

Hint: Answer is between 0.0106 and 0.0130

The following data is provided on two stocks, IBM and WMT, the market risk premium, and the risk-free rate.

Stock	Actual Stock Return	Market Risk Premium	Risk-free Rate	Stock Beta
IBM	5.0%	6.0%	2.0%	0.9
WMT	11.0%	6.0%	2.0%	1.3

What is the abnormal return (i.e., alpha) for stock IBM?

Enter your answer in the following format: 0.1234

Hint: Answer is between -0.0214 and -0.0264

14.

The following data is provided on two stocks, IBM and WMT, the market risk premium, and the risk-free rate.

Stock	Actual Stock Return	Market Risk Premium	Risk-free Rate	Stock Beta
IBM	5.0%	6.0%	2.0%	0.9
WMT	11.0%	6.0%	2.0%	1.3

What is the expected return for stock IBM?

Enter your answer in the following format: + or - 0.1234

Hint: Answer is between 0.0651 and 0.0829

15.

The following data is provided on two stocks, IBM and WMT, the market risk premium, and the risk-free rate.

Stock	Actual Stock Return	Market Risk Premium	Risk-free Rate	Stock Beta
IBM	5.0%	6.0%	2.0%	0.9
WMT	11.0%	6.0%	2.0%	1.3

What is the expected return for stock WMT?

Enter your answer in the following format: + or - 0.1234

Hint: Answer is between 0.0892 and 0.1088

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