What is the capm alpha associated with security

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You're considering an investment in Gekko & Co, a financial investment corporation that is located in New York City and is currently run by a famed corporate raider who is under investigation for insider trading. The company's shares currently have an expected return of 12.42% and a beta of 1.21. The risk-free rate is currently 0.80%, the the market's expected rate of return is 4.09%. What is the CAPM alpha associated with this security?

Note: Please express your answer as a decimal and not a percentage. For instance, an expected return of 5% should be expressed as 0.05, an expected return of 50% should be expressed as 0.5, and an expected return of 500% should be expressed as 5. Please provide an answer that is accurate to at least four decimal places.

Reference no: EM133121752

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