Question: ffffUse your model to answer the following questions: Your Answer Correct Answer What is the stock's beta? 0.71 What is the stock's alpha? 0.35% What

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\f\f\f\fUse your model to answer the following questions: Your Answer Correct Answer What is the stock's beta? 0.71 What is the stock's alpha? 0.35% What is the stock's arithmetic average monthly return over the 10 years of historical data? 1.22% What is the stock's geometric average monthly return over the 10 years of historical data? 1.16% What is the stock's total return over 10 years? 300.56% What is the total return from compounding the arithmetic average monthly return for 10 years? 329.35% What is the total return from compoundinglthe geometric average Ihonthly return for 10 years? 300.56% I 1 + Excess Market 1 + Excess Stock Cumulative Market Cumulative Stock Month Excess Market Return Excess Stock Return Return Return Return 0 x x x x 1.00 1.00 1 -1.336% 4.896% 2 3.207% 4.143% 3 -0.615% -1.435% 4 5.356% 3.503% 5 3.799% 2.471% 6 -0.212% 0.389% 7 -1.467% -1.320% 8 -3.193% 4.524% 9 1.774% 3.292% 10 11.080% 9.893% 11 -5.722% 4.894% 12 6.791% 7.195% 13 -5.960% 4.155% 14 -0.780% -1.677% 15 0.509% 1.176% 16 -2.012% -2.898%

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