Question: For Collins's Costly Cosmetics, LLP., the analyst Derek, using monthly EXCESS returns over the past 7 years, has estimated the Single Factor model, finding the

For Collins's Costly Cosmetics, LLP., the analyst Derek, using monthly EXCESS

For Collins's Costly Cosmetics, LLP., the analyst Derek, using monthly EXCESS returns over the past 7 years, has estimated the Single Factor model, finding the market beta to be 1.3and has forecasted that the expected alpha is 1.84\%, and expected market (excess) return is 2.6%. Given this information, what is the Expected (excess) Return for Collins's Costly Cosmetics, LLP.? Select one: a. 3.00% b. 1.84% c. 5.22% d. 2.23% e. 3.38% f. insufficient information to determine g. 2.62%

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