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The expected return on the market portfolio is 1 5 % . The risk - free rate is 8 % . The expected return on

The expected return on the market portfolio is 15%. The risk-free rate is 8%. The expected return on SDA Corp. common stock is 16%. The beta of SDA Corp. common stock is 1.25. Within the context of the capital asset pricing model,
SDA Corp. stock is underpriced
SDA Corp. stock is fairly priced
SDA Corp. stock alpha is .75%
SDA Corp. stock's alpha is -.75%
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