a stock's expected return based on its current market price is $12\mathrm{.}3\%,$ and the stock's Beta is $2\mathrm{.}2,$ is the stock over, under, or correctly valued? The risk$-$free rate is $4$ percent, and the expected return on the market is $9\%.$ overvalued since the stock's equilibrium return is less than its expected return based on its market price. overvalued since the stock's equilibrium return is greater than its expected return based on its market price. undervalued since the stock's equilibrium return is less than its expected return based on its market price. correctly valued undervalued since the stock's equilibrium return is greater than its expected return based on its market price.