You are estimating a simple linear regression model for a stock using monthly return data with a market index portfolio. The estimated beta and alpha of the stock are 0.6 and 0.02, respectively. Suppose that the market excess return was 3% in a month. What is the predicted excess return on the stock in that month?

Note: Write your answers in decimal (do not round). For example, write 0.082 instead of 8.2%.