Question 1 (Capital Asset Pricing Model (CAPM)) Suppose regressing the return of stock A on the market return (not the excess return) recovers an estimate of 0.03 for the intercept and 0.5 for the regression slope coefficient. If the risk-free interest rate is 2%, what is the implied CAPM alpha for stock A closest to? A. 0.01 B. 0.00 C. 0.01 D. 0.015 E. 0.02 E(rm)=0.03+0.5(R(m)0.03)E(rA)=0.02+(R(m)0.02)0.03+0.5