You choose to construct a portfolio from the Stock A, Stock…

You choose to construct a portfolio from the Stock A, Stock B, and the risk-free investment. You make the following estimates of the three: Estimates of Alpha, Beta, and Firm-Specific Risk   Alpha Beta Firm-Specific Std Dev Stock A 0.50% 1.20 30.00% Stock B 0.25% 0.60 20.00% Risk-Free Investment 0.00% 0.00 0.00% You invest 25% of your portfolio in Stock A, 40% in Stock B, and the remaining 35% in the risk-free investment. What is your portfolio’s alpha?