What is the estimated alpha

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The risk-free rate is 1.29%, a stock's adjusted systematic risk exposure is 1.64, and the market risk premium is 5.5%. If the expected return for this stock is 12.45%, then what is the estimated alpha according to the Capital Asset Pricing Model? State your answer with two decimal places and as a raw number, not a percentage (i.e., 13.21, not .1321). Enter a negative value if your estimated alpha is negative.

Reference no: EM133073759

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