Question: Question 4 (10 points) Consider the information provided in the table below: Expected Return 10.25% 14.00% 11.75% 4.25% Beta 0.84 1.24 Stock A Stock B

Question 4 (10 points) Consider the information provided in the table below: Expected Return 10.25% 14.00% 11.75% 4.25% Beta 0.84 1.24 Stock A Stock B Market Portfolio Risk Free Asset A. Comment on whether Stocks A and B are uisoriced Are they underpriced? Are they overpriced? Explain. (5 points) Calculate the "alpha" associated with each of the stocks. (5 points) B

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