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QUESTION 5 The expected return on the market portfolio is 20%. The risk-free rate is 11%. The expected return on SDA Corp. common stock is

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QUESTION 5 The expected return on the market portfolio is 20%. The risk-free rate is 11%. The expected return on SDA Corp. common stock is 19%. The beta of SDA Corp. common stock is 1.80. Within the context of the capital asset pricing model, SDA stock is fairly priced SDA stock's alpha is 8.2% SDA Corp. stock's alpha is -8.20% SDA Stock is underpriced

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