Problem $7-17($Algo$)$

Consider the following information:

$\backslash$table$[[$Portfolio$,\backslash$table$[[$Expected$],[$Return$]],$Beta$],[$Risk$-$free,$7\%,0],[$Market$,11\mathrm{.}0,1\mathrm{.}0],[$A$,10\mathrm{.}0,1\mathrm{.}8]]$

Required:

a$.$ Calculate the return predicted by CAPM for a portfolio with a beta of $1\mathrm{.}8.($Round your answer to $2$ decimal places.$)$

Return

$\%$

b$.$ What is the alpha of portfolio A$.($Negative value should be indicated by a minus sign. Round your answer t$2$ decimal places.$)$

Alpha

$\%$