Question 7 (1 point) Given the following information, is Portfolio X overpriced, underpriced, or fairly priced based on the CAPM? What is the predicted alpha of Portfolio X based on the CAPM? Portfolio X: 3% T-bill rate 18.5% Forecast Return 13% E(RM) Standard deviation of 22% returns 1.6 Beta Overpriced; 0.5% Fairly Priced; 0.0% Overpriced; -0.5% Underpriced; -0.5% Page 7 of 30