In the open market, Security X is observed with an expected rate of return of 14% and a beta of 1.18. The risk-free rate is 5%, and the market expected rate of return is 15%. (1) According to the capital asset pricing model, is Security X overpriced/underpriced/fairly-priced?

(2) Is it located above/under/on the SML? (3) If mispriced, compute its alpha.