The expected return on the market portfolio is 19%. The risk-free rate is 12%. The expected return on SDA Corp. common stock is 18%. The beta of SDA Corp. common stock is 1.40. Within the context of the capital asset pricing model, _________.

Multiple Choice

SDA Stock is underpriced

SDA stock is fairly priced

SDA Corp. stock's alpha is 3.80%

SDA stock's alpha is 3.8%