Question: *Note: Answer me in 20 min. I will give you thumbs up. Q6) Suppose the expected return from the market is 25% and the risk-free

 *Note: Answer me in 20 min. I will give you thumbs

*Note: Answer me in 20 min. I will give you thumbs up.

Q6) Suppose the expected return from the market is 25% and the risk-free rate is 14%. (4x2.5 = 10 marks) (a) Calculate the expected return from a stock with a beta of 1.7. (b) What is the alpha of the stock if the actual return was 15%? (c) If the market instead actually fell by 25%, instead of the original 25% rise; calculate the expected return. (d) If the actual return was -35%, what is the alpha in case (c)

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