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Within the context of CAPM, we are told that the expected market return is 15%; the risk-free rate is 8%; and RGX stock's beta is
Within the context of CAPM, we are told that the expected market return is 15%; the risk-free rate is 8%; and RGX stock's beta is 1.25. The portfolio manager sees RGX trading at a 17.05% return in the market. Please mark the correct statement: a. RGX is overpriced b. RGX's alpha is -0.30% c. RGX's alpha is 0.30% Od. RGX is fairly priced
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