Question: What is the securitys expected alpha according to the CAPM? You've analyzed IBM's stock and expect it to deliver a return of 11% over the

 What is the securitys expected alpha according to the CAPM? You've
What is the securitys expected alpha according to the CAPM?

You've analyzed IBM's stock and expect it to deliver a return of 11% over the next year. The stock has a beta of 0.4. The risk-free rate is 2.5% and the expected market risk premium is 4.5%

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