Answer the question. Assume the risk-free rate of return is 2.5% and the expected return on the market portfolio is 8%. The table below lists returns expected by market participants, and equity beta for stocks A, B, and C. For each stock compute the expected return implied by the capital asset pricing model (CAPM) and determine whether each stock is overvalued or undervalued in the market (relative to the CAPM) and explain the rationale for your determination. Stock Name Beta Stock Expected Return A 0. 8 7 .5% B 1.2 8.5% C 1.6 14.0%