Question: If the risk-free asset return is 0.036, the expected return on the market portfolio is 0.055, the actual return on a stock is 0.08, and
If the risk-free asset return is 0.036, the expected return on the market portfolio is 0.055, the actual return on a stock is 0.08, and its beta is 4.5. What is the Jensen's alpha (the difference between E(Ri) and actual return) of the stock?
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