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The expected return on the market portfolio is 18%. The risk-free rate is 11%. The expected return on SDA Corp. common stock is 17%. The
The expected return on the market portfolio is 18%. The risk-free rate is 11%. The expected return on SDA Corp. common stock is 17%. The beta of SDA Corp. common stock is 1.30. Within the context of the capital asset pricing model, _________.
A. SDA stock is underpriced
B. SDA stock is fairly priced
C. SDA corps stock alpha is -3.10%
D. SDA stocks alpha is 3.1%
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