QUESTION 4 a Stock A has a systematic risk of Beta = 1.5. The risk-free rate is 2% and the return on the market portfolio is 12% The last dividend paid was $2.25. The growth rate of dividends in the first period is 3% and from the second period on is 2%. If the actual rate of return is 14%, Stock A's price is $19.31, and 1. Stock A is overpriced and should be sold II. Stock A has a Jensen's Alpha of -3% III. Stock A is in equilibrium a. I only b. II only c. III only d. I and II only e. I, II, and