A stock you own, Daniela's Dangerous Dancers, PLC., is forecast to have a rate of (excess) return of 12.89%, has a beta of 0.85, and the market risk premium is 5.20%. According to the Capital Asset Pricing Model, you should ____ :

Select one:

a.

Hold, because the stock is fairly priced

b.

Sell, because the stock is underpriced

c.

Buy, because the stock is underpriced

d.

Sell, because the stock is overpriced

e.

Buy, because the stock is overpriced