Question: . Beta of XFintech = 2 Expected inflation = 2% Market risk premium = 5% Real risk-free interest rate = 1% Your forecast return on

. Beta of XFintech = 2

Expected inflation = 2%

Market risk premium = 5%

Real risk-free interest rate = 1%

Your forecast return on XFintech = 10%

Compute the alpha and use it to determine whether the following stock, XFintech, is fairly priced, overpriced or underpriced.

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