Question: please solve it ASAP I do not have much time Question 14 1 pts Consider three stocks A, B, and C for which you have
please solve it ASAP I do not have much time
Question 14 1 pts Consider three stocks A, B, and C for which you have the following information: Stock Expected Return 19.5% 14.5% 10% Beta 1.28 0.75 0.635 Moreover, you know that the risk-free rate is R_f=1.5% and the market expected return is E[R_M]=11\%. Using the three stocks, you decide to form a portfolio that has the same systematic risk as the market (i.e., the beta of the portfolio is \beta_p=1) while making sure that stocks A and B receive equal weights. What is the alpha of that portfolio? O 5.72% 8.70 % 11.62 % 0 7.00 %
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