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A stock's beta is 1.4, its standard deviation is 30% and you expect that it will earn 12% expected return. The risk free rate is
A stock's beta is 1.4, its standard deviation is 30% and you expect that it will earn 12% expected return. The risk free rate is 3% and the market's expected risk premium is 8%. The stock plots ________ (above/below) the SML and according to the CAPM it is _________ (underpriced/overpriced). The stock's Jensen's alpha is ______ % (rounded to two decimals), its Treynor measure is ___________ (no units,use numbers in decimals to calculate) and is Sharpe ratio is ________ (no units,use numbers in decimals to calculate) .
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