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The common stock of Alpha Manufacturers has a beta of 114 and an expected rotum ORR) of 15.26 percent. The risk free rate of return

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The common stock of Alpha Manufacturers has a beta of 114 and an expected rotum ORR) of 15.26 percent. The risk free rate of return is 43 percent and the market rate of return is 12 01 percent which one of the following statements is true given this information Multiple Choice The stock has less systematic risk than the overall market The actual expected stock return indicates the stock is currently corectly priced To be correctly priced, according to CAPM. the stock should have an expected return of 21.95 percent. The stock is overvalued The actual expected stock return will graph above the Security Market Line

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