Finance Assignment | Professional Writing
The expected return on the market portfolio is 16%. The risk-free rate is 8%. The expected return on SDA Corp. common stock is 15%. The beta of SDA Corp. common stock is 1.70. Within the context of the capital asset pricing model, _________.
- SDA stock’s alpha is 6.6%
- SDA Corp. stock’s alpha is –6.60%
- SDA stock is fairly priced
- SDA Stock is underpriced
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