$($a$)$ The common stock of Thapelo Limited has a beta of $1\mathrm{.}4.$ The risk free rate on treasury bills is $6\%.$ The return on the market portfolio is $15\%.$

Required:

$($i$)$ Compute the expected return for the stock using the Capital Asset Pricing Model. $(2)$

$($ii$)$ If the actual return of the stock was $17\%,$ determine whether the stock is overvalued, undervalued, and correctly valued. $(2)$