the beta of security x is 1.4. the risk-free rate is 3% and the market expected rate of return is 13%. suppose you forecast that security x will earn a return of 13.5%. based on this forecast, what is the alpha of security x? is the security x underpriced, overpriced, or fairly priced? the beta of security x is 1.4. the risk-free rate is 3% and the market expected rate of return is 13%. suppose you forecast that security x will earn a return of 13.5%. based on this forecast, what is the alpha of security x? is the security x underpriced, overpriced, or fairly priced? alpha