The expected return on the market portfolio is 13%. The risk-free rate is 6%. The expected return on SDA Corp. common stock is 12%. The beta of SDA Corp. common stock is 1.50. Within the context of the capital asset pricing model, _________. rev: 10_23_2013_QC_37809

SDA stock's alpha is 4.5%

SDA Corp. stock's alpha is 4.50%

SDA Stock is underpriced

SDA stock is fairly priced