What is the stock alpha as based on the capm

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Reference no: EM131360053

The current price of stock A is $10. The stock is expected to pay a dividend of $0.05 per share next year and your advisory service tells you that you can expect to sell the stock in one year for $12. The stock's beta is 1.1, risk-free rate is 3% and market expected return is 10%. What is the stock's Alpha as based on the CAPM?

Reference no: EM131360053

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