Problem 9 Part 1 | Attempt 3/3 for 8 pts. Which of the following statements is true about a stock's alpha? Check all that apply: It represents the difference between the return that a stock earns (or is expected to earn) less what it should earn for its level of risk. Fairly priced stocks have positive alphas. Overpriced stocks have positive alphas. It represents the difference between a stock's fair return and the risk premium on the market portfolio. Fairly priced stocks have zero alphas. Submit Try again