If you want to search for under-pricing assets, you should look for
A) Low betas
B) High betas
C) Low alphas
D) High alphas
E) Low standard deviations

Question

Quizplus · Accepted Answer

High alphas are indicative of assets that are underpriced as they have historically produced a higher return than what would be expected given their level of risk (as measured by beta). This suggests that the market has not fully priced in the asset's true value.

If You Want to Search for Under-Pricing Assets, You Should