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The risk-free rate is 6%, and market index has an expected return of 15%. If stock SDA has a beta of 1.40 and an expected
The risk-free rate is 6%, and market index has an expected return of 15%. If stock SDA has a beta of 1.40 and an expected return of 14%. According to CAPM, _________.
A. SDA stock's alpha is 4.6%
B. SDA Stock is underpriced
C. SDA stock's alpha is 4.60%
D. SDA stock is fairly priced
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Handbook Of Modeling High Frequency Data In Finance
Authors: Frederi G. Viens, Maria Cristina Mariani, Ionut Florescu
1st Edition
