A security has an expected rate of return of 0.15 and a beta of 1.25. The market expected rate of return is 0.10, and the risk-free rate is 0.04. The alpha of the stock is
A) 1.7%.
B) −1.7%.
C) 8.3%.
D) 3.5%.

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The Answer of A security has an expected rate of return of 0.15 and a beta of 1.25. The market expected rate of return is 0.10, and the risk-free rate is 0.04. The alpha of the stock is
A) 1.7%.
B) −1.7%.
C) 8.3%.
D) 3.5%.

A Security Has an Expected Rate of Return of 0