The expected return on the market portfolio is 19%. The risk-free rate is 11%. The expected return
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Question:
The expected return on the market portfolio is 19%. The risk-free rate is 11%. The expected return on SDA Corp. common stock is 18%. The beta of SDA Corp. common stock is 1.10. Within the context of the capital asset pricing model, _________.
A SDA stock's alpha is 1.8%
B SDA stock is fairly priced
C SDA Stock is underpriced
D SDA Corp. stock's alpha is -1.80%
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