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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
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 of SDA Corp. common stock is 1.25. Within the context of the Capital Asset Pricing Model, is the common stock of SDA Corp. overpriced, underpriced or fairly priced?
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