(solution) The expected return on the market portfolio is 12%. The risk free rate is 7%. The expected return on

(solution) The expected return on the market portfolio is 12%. The risk free rate is 7%. The expected return on

The expected return on the market portfolio is 12%. The risk free rate is 7%. The expected return on SDA Corp. common stock is 13%. The beta of SDA Corp. common stock is 1.69. Within the context of the capital asset pricing model,_____. a) SDA Corp stock's alpha is -2.45% b) SDA Corp stock is fairly priced c) SDA Corp stock alpha is 2.45% d) SDA Corp stock is underpriced