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5. Security A has an expected rate of return of 11% and a beta of...

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5. Security A has an expected rate of return of 11% and a beta of 0.75. The market expected rate of return is 12% and the risk-free rate is 1%. The alpha of the stock is: A. -1.25% B. 1.00% C. 1.75% D. 9.25%

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