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The expected return on the market portfolio is 17%. The risk-free rate is 10%. The expected return on SDA Corp. common stock is 16%. The
The expected return on the market portfolio is 17%. The risk-free rate is 10%. The expected return on SDA Corp. common stock is 16%. The beta of SDA Corp. common stock is 1.20. Within the context of the capital asset pricing model, SDA Corp. stock's alpha is -2.40% SDA stock's alpha is 2.4% SDA stock is fairly priced SDA Stock is underpriced
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