8. You believe that the market determines prices based on the CAPM. The risk free rate is 5% and the market risk premium is 9%. GMD stock has a beta of 2. Given private information you have obtained, you believe that GMD will return 15% over the coming year. (4 points) Given the above, you must believe that GMD is (over or under) valued (circle one). Explain in the space below and give supporting numbers. a. b. Given your beliefs, you should (buy or short sell) GMD (circle one). Explain in the space below