2. [5 points] The equity analyst in one prominent investment bank is about to provide the recommendation of individual stock for investors. He assumes that the CAPM is a good description of stock price returns. He also set the following criteria for the stock recommendation: Denote a as the the security's alpha. If a is greater than or equal to 0.5%, it is recommended to buy. If a is between -0.5% and 0.5%, it is recommended to hold. If a is less than or equal to -0.5%, it is recommended to sell. The market expected return is 10% with 14% volatility, and the risk free rate is 2%. And the following table provides the related information for four individual stocks: RBC Rogers WestJet Airlines Suncor Energy Expected Return 10.5% 17.7% 6.3% 16.7% Volatility Beta 15% 1.05 25% 2.1 7.5% 0.25 17% 1.5 Calculate each stock's alpha and provide each recommendation for individual stock