Question: Explain the relation between the positive alpha (a) stock and the security market line (SML) that is presented in the graph below. SML Stock 15.6

Explain the relation between the positive alpha (a) stock and the security market line (SML) that is presented in the graph below. SML Stock 15.6 1.0 1.2 Figure 9.3 The SML and a positive-alpha stock

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