Question: You use the single index model to estimate the expected return for firm 1 . Alpha and Beta for firm 1 , are 1 %

You use the single index model to estimate the expected return for firm 1. Alpha and Beta for firm 1,are 1% and 2, respectively. On May 13th, the actual return on the market was 2%, and the actual return on firm 1 was 6%. The unexpected part of the firm specific return for firm 1 on May 13th is 1%, write out the workings
You use the single index model to estimate the expected return

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