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Determine the expected alpha of security

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You are analyzing an equity security with the following attributes: Expected return: 14.5% CAPM beta: 1.25 SMB beta: .80 HML beta: -.45 You also collect the following data regarding the market in general: Equity risk premium: 7.70% SMB spread: 2.25% HML spread: 1.00% Risk free rate: 3.75% Using this data and the Fama-French model, determine the expected alpha of this security.

Reference no: EM132816138

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