Question: A stock's beta is 1.4, its standard deviation is 30% and you expect that it will earn 12% expected return. The risk free rate is

A stock's beta is 1.4, its standard deviation is 30% and you expect that it will earn 12% expected return. The risk free rate is 3% and the market's expected risk premium is 8%. The stock plots _____ (above/below) the SML and according to the CAPM it is _____ (underpriced/overpriced). The stock's Jensen's alpha is _____ % (rounded to two decimals), its Treynor measure is _____ (no units,use numbers in decimals to calculate) and is Sharpe ratio is _____ (no units,use numbers in decimals to calculate)

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