Question: Please show all equations and work as needed. 5. Consider the CAPM model. The alpha of a stock is 0%. The return on the market

Please show all equations and work as needed.

Please show all equations and work as needed. 5. Consider the CAPM

5. Consider the CAPM model. The alpha of a stock is 0%. The return on the market index is 10%. The risk-free rate of return is 5%. The stock earns a return that exceeds the risk-free rate by 5%, and there are no firm-specific events affecting the stock performance. The of the stock is A. 0.67 B. 0.75 C. 1.0 D. 1.33 E. 1.50

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