Asset Std. deviation | A Market (M) E(R) 17% 10% 209 Above is the expected return and standard deviation of a stock A and the market portfolio. The correlation coefficient between A and the market portfolio (M) is 0.5. The risk-free rate is 4% Based on CAPM, stock A is_ because it offers an alpha of A underpriced: 7% Runderpriced: 5.5% Oc overpriced; 5,5% Od underpriced; 0.5% E overpriced; -0.5%