#1:The expected return on the market portfolio is 20%. The risk-free rate is 12%. The expected return on SDA Corp. common stock is 19%. The beta of SDA Corp. common stock is 1.20. Within the context of the capital asset pricing model

a:SDA Stock is underpriced b:SDA stock is fairly priced c:SDA Corp. stock's alpha is 2.60% d:SDA stock's alpha is 2.6%

#2:You have a $51,000 portfolio consisting of Intel, GE, and Con Edison. You put $20,400 in Intel, $12,400 in GE, and the rest in Con Edison. Intel, GE, and Con Edison have betas of 1.3, 1, and .8, respectively. What is your portfolio beta?