Within the context of the capital asset pricing model (CAPM), assume: ∙ Expected return on the market = 15% ∙ Risk-free rate = 8% ∙ Expected rate of return on XYZ security = 17% ∙ Beta of XYZ security...

Within the context of the capital asset pricing model (CAPM), assume:
∙ Expected return on the market = 15%
∙ Risk-free rate = 8%
∙ Expected rate of return on XYZ security = 17%
∙ Beta of XYZ security = 1.25
Which one of the following is correct?
a. XYZ is overpriced.
b. XYZ is fairly priced.
c. XYZ’s alpha is −.25%.
d. XYZ’s alpha is .25%.

Please explain in detail the calculation