A firm's class A common shares are currently trading for $14.38 on the Toronto Stock Exchange. The risk free rate prevailing in the market is currently 4%, the expected return on the market portfolio is 10%. The firm has a beta of 1.2 and is expected to pay a dividend of $2 forever. Under these conditions, the firm's common shares are currently: O a Fairly priced Ob Under priced because the CAPM return is lower than its implied return OC. Over priced because the CAPM return is lower than its implied return O d. Under priced because the CAPM return is higher than its implied return O. Over priced because the CAPM return is higher than its implied return Stock X has a standard deviation of 25% and a correlation coefficient of 0.7 with market returns. The expected return of the market is 13.4% with a standard deviation of 15%. The risk-free rate is 2.9%. What is the required return of Stock X? The required return of Stock X is %. (Note: please retain at least 4 decimal places in your calculations and at least 2 decimal places in the final answer.)