16. Your forecasting model projects an expected return of 26.00% for Stock A and an expected return of 45.00% for Stock B. Using the information in questions 13 and 14 and your forecasted expected returns, what is your best estimate of the alpha of your portfolio when using CAPM to determine a fair level of expected return? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.

Need Question 17 answered!!

Question 17:

17. Using the data from problem 16, according to CAPM, is your portfolio undervalued, overvalued, or fairly valued?

Group of answer choices

Undervalued

Overvalued

Fairly Valued