Question: consider the following data for a single factor model economy. all portfolios are well diversified. suppose portfolio p has an expected return of 1 9

consider the following data for a single factor model economy. all portfolios are well diversified. suppose portfolio p has an expected return of 19% and beta of 2.0. portfolio m has an expected retrun of 12% and beta of 1.0. assume that the risk free rate is 7% and that arbitrage opportunities exist. what is the portfolio p's alpha?

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