Under a Single Index Model paradigm with the market portfolio being the single factor, calculate...

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Accounting

Under a Single Index Model paradigm with the market portfolio being the single factor, calculate the expected return for a security with a beta of 0.52 and alpha of -0.2%. Assume that the expected market excess return is 10%, the risk-free rate is 1.9%, and the expected value of residuals is zero.
A.5.9%
B.6.9%
C.8.2%
D.4.0%

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