1. The expected return on the market portfolio is 19%. The risk-free rate is 12%. The expected return on SDA Corp. common stock is 18%. The beta of SDA Corp. common stock is 1.40. Within the context of the capital asset pricing model, _________.
SDA stock's alpha is 3.8%
SDA stock is fairly priced
SDA Corp. stock's alpha is –3.80%
SDA Stock is underpriced
2. Many companies today are localizing their products, advertising, promotion, and sales efforts to fit the needs of individual regions, cities, and neighborhoods." This is an example of ________.