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3. corpora Stock, preleted 4. Within the context of the capital asset pricing model (CAPM), assume: | Expected return on the market = 15% O

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3. corpora Stock, preleted 4. Within the context of the capital asset pricing model (CAPM), assume: | Expected return on the market = 15% O Risk-free rate = 8% | Expected rate of return on XYZ security = 17% 0 Beta of XYZ security = 1.25 nich one of the following is correct? Thoroughly explain your answer a. XYZ is overpriced b. XYZ is fairly priced c. XYZ's alpha is -25% d. XYZ's alpha is.25%

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