Problem $4,$ Question $2$

Assume that the risk$-$free rate is $6\%$ and the expected market return is $16\%.$ The expected returns and the betas of the following $4$ securities are given below:

$\backslash$table$[[$Stock$,$Exp.return,Beta$],[$A$,19\%,1\mathrm{.}2],[$B$,20\%,1\mathrm{.}4],[$C$,12\%,0\mathrm{.}8],[$D$,11\%,0\mathrm{.}6]]$

What is the alpha of an equally$-$weighted portfolio that consists of all over$-$priced securities$?$

a$.-2\%$

b$.2\%$

c$.0\mathrm{.}5\%$

d$.-1\mathrm{.}5\%$

e$.1\mathrm{.}5\%$

f$.-1\%$

g$.-0\mathrm{.}5\%$

h$.1\%$