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What is the stock capm alpha

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Strategy X has a Fama-French alpha of -1% and has a factor loadings of 1, 2, and 3 on the excess market return, SMB, and HML factors, respectively. Assume the factor risk premiums are each 5%. What is the stock's CAPM alpha? Assume the market risk premium is 5% and the stock's market beta is 1.

Reference no: EM132978903

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