Analysts have the following prediction about the price of shares in Google in one? year's time: if the economy grows? strongly, then the share will reach a price of? $440; if the economy stays at its present intermediate growth? rate, then the price will be? $420; finally, if the economy goes into recession then the price will be only? $370. Analysts do not expect Google to pay a dividend. ? Analysts' predictions and the associated probabilities are summarized in the? table, below.

Economic Growth	Probabilities	Price	Return
Strong	0.2	?$440	?16.10%
Intermediate	0.5	?$420	?10.82%
Recession	0.3	?$370	?-2.38%

Assume that you can buy Google for? $379 today.? Google's beta is? 1.25, the? risk-free rate is? 4%, and the expected market return is? 9.5%. Is? Google's stock currently undervalued or? overvalued????(Select the best choice? below.)

A.

Overvalued

B.

Undervalued

C.

Not enough information