Question: Please explain and show the steps. And please also let me know what is the use of standard deviation in counting alpha, thanks. Expected Return

Please explain and show the steps. And please also let me

Please explain and show the steps. And please also let me know what is the use of standard deviation in counting alpha, thanks.

Expected Return Beta Standard Deviation 20% AAPL 16% 1.3 Market Index 10% 13% 1.0 Risk-free rate 5% What is the alpha for stock AAPL? a. 2.5% b. 3.5% C. 4.5% d. 6%

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