Based on your projections and the current stock price, you have estimated that Boeing will earn an expected rate of return of 11%. It has a beta of 0.8. The risk-free rate is 4% and the market expected rate of return is 9%. According to the Capital Asset Pricing Model, Boeing is:

a.fairly priced, its alpha is zero.

b.Cannot be determined from data provided, alpha cannot be determined.

c.underpriced, its alpha is positive.

d.overpriced, its alpha is negative.