Suppose the risk-free rate is 2% and the market risk premium is 12%. Stock Y currently is selling at $36. An analyst forecasted that Stock Y's dividend and price next year will be $2 and $39. Stock Y has beta of 0.65.

Assume the CAPM holds. Which of the following statements are true?

Check All That Apply

• The estimated alpha of the stock is 4.09%The estimated alpha of the stock is 4.09%

• According to CAPM, the required return is 9.8%According to CAPM, the required return is 9.8%

• The stock's Treynor's ratio is greater than the market risk premium.The stock's Treynor's ratio is greater than the market risk premium.

• The stock is overpriced.The stock is overpriced.

• The stock is lying above the SML.The stock is lying above the SML.

• The estimated alpha of the stock is -3.36%The estimated alpha of the stock is -3.36%

• According to CAPM, the required return is 11.09%According to CAPM, the required return is 11.09%

• The estimated alpha of the stock is 4.28%The estimated alpha of the stock is 4.28%