The risk-free rate is 1.48%, a stock's adjusted systematic risk exposure is 1.62, and the market risk

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The risk-free rate is 1.48%, a stock's adjusted systematic risk exposure is 1.62, and the market risk premium is 6.1%.If the expected return for this stock is 10.97%.

What is the estimated alpha according to the Capital Asset Pricing Model?

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Corporate Finance A Focused Approach

ISBN: 978-1439078082

4th Edition

Authors: Michael C. Ehrhardt, Eugene F. Brigham

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Posted Date: Apr 18, 2023 11:25 PM

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The risk-free rate is 1.48%, a stock's adjusted systematic risk exposure is 1.62, and the market risk

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The Capital Asset Pricing Model CAPM provides a formula for estimating the expected return of an ass... View the full answer

Corporate Finance A Focused Approach

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