Bernie is a stock analyst at JP Mortgage. He uses CAPM to estimate if Magma (MGMA) stock is trading cheap or expensive relative to CAPM's prediction. The risk free rate is 4.00%, the market expected return is 14%, and Magma's Beta = 1.5. MGMA stock is trading at a price consistent with an expected return of 21%. Please mark the only INCORRECT statement about MGMA stock.

	a.	MGMA's is trading expensive, therefore the trading desk should go SHORT MGMA
	b.	MGMA's alpha is +2.00%
	c.	MGMA is trading cheap relative to its fundamental value
	d.	Bernie should recommend the trading desk to GO LONG MGMA's