Question: You are a portfolio manager, and your client would like to invest $175,000 in High Fly Airlines (HFA) with the expected rate of return of

You are a portfolio manager, and your client would like to invest $175,000 in High Fly Airlines (HFA) with the expected rate of return of 10% and a beta of 1.25. The expected return on the market portfolio is 7% and the risk-free rate is 0.50%. Based on the given information, the alpha of HFA stock is?

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