Question: 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 Corporation common stock is 16%. The beta of SDA Corporation common stock is 1.25. Within the context of the capital asset pricing model,
Multiple Choice
SDA Corporation stock is underpriced
SDA Corporation stock's alpha is -075%
SDA Corporation stock alpha is 075%
SDA Corporation stock is fairly priced
The expected return on the market portfolio is 1

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