The expected return on the market portfolio is 14%. The risk-free rate is 7%. The expected return on SDA Corp. common stock is 13%. The beta of SDA Corp. common stock is 1.60. Within the context of the capital asset pricing model, _________.
a. SDA Stock is underpriced
b. SDA stock is fairly priced
c. SDA Corp. stock's alpha is –5.20%
d. SDA stock's alpha is 5.2%