A portfolio is composed of two stocks, A and B. Return of stock A has a standard deviation of 35%, while stock B's return has a standard deviation of 15%. The correlation coefficient between the returns on A and B is .45. Stock A comprises 40% of the portfolio, while stock B comprises 60% of the portfolio. What is the standard deviation of the return on this portfolio?

1. Security X has an expected rate of return of 13% and a beta of 1.15. The risk-free rate is 5%, and the market expected rate of return is 15%. According to the capital asset pricing model, is security X underpriced, overpriced, or fairly priced?
2. Security A has an expected rate of return of 12% and a beta of 1.1. The market expected rate of return is 8%, and the risk-free rate is 5%. What is the alpha of the stock?