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The expected return on the market portfolio is 12%. The risk free rate is 7%. The expected return on SDA Corp. common stock is 13%. The beta of SDA...

The expected return on the market portfolio is 12%. The risk free rate is 7%. The expected return on SDA Corp. common stock is 13%. The beta of SDA Corp. common stock is 1.69. Within the context of the capital asset pricing model,_____.
a) SDA Corp stock's alpha is -2.45%
b) SDA Corp stock is fairly priced
c) SDA Corp stock alpha is 2.45%
d) SDA Corp stock is underpriced
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Business-8099212.xls

QUESTION:
The expected return on the market portfolio is 12%. The risk free rate is 7%. The expected return on SDA Corp. common stock is
13%. The beta of SDA Corp. common stock is 1.69. Within the...

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