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Alpha and PricingThe risk free rate is 1.7% and the market price of risk is 5.5%. A stock with a beta of 1.2 has an

Alpha and PricingThe risk free rate is 1.7% and the market price of risk is 5.5%. A stock with a beta of 1.2 has an expected dividend yield of 5% and an expected capital gain of 4%. This stock's alpha is equal to ______ and the stock is ________.

-9.55%; underpriced 0.7%; underpriced +9.55%; overpriced -0.7%; overpriced

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