You discover an investment costing $3,000 which has an expected total return of 15% pa, but a required return of only 11% pa. Of the 15% pa total expected return, the capital return is expected to be 8% pa. Assume that the required return of 11% remains constant, the dividends can only be re-invested at 11% pa and all returns are given as effective annual rates. Which of the following statements is NOT correct?

a. The expected dividend return is 7%

b. You would use a discount rate of 11% to find the NPV of this investment

c. When plotted on the Security Market Line, the investment would have a positive alpha.

d. The investments price at time t=20 would be $49,099.61

e. The investment is currently under-priced