What is the alpha of security in this stock underpriced

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Reference no: EM132017546

Security x has an expected rate of return of 13% and a beta of 1.15. The risk free rate is 5% and the market expected rate of return is 15%. What is the alpha of security x in this stock underpriced, overpriced or fairly priced? Would you suggest buy or sell?

Reference no: EM132017546

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