The stock of XXG is trading at P₀=$36. Its expected rate of return is r=13%. The expected dividend this year is D₁ = $3.24; dividends will grow at g=4% per year. We value the stock using the growth formula P₀ =D₁ / (r-g).

The risk-free rate is 4%, and the market risk premium is 8%. The companys beta is 1.20. Is the stock overpriced or underpriced. What is its alpha?

The stock is #54 and its alpha is #55 %.