Assume CAPM is true but the market is yet to reach equilibrium. A stock has a market beta of 1.25. The expected market risk premium is 7% and the risk-free rate is 8%. This gives an expected return of 16.75%. The current price for this stock, however, reveals that the market is using 17% as the expected return (hence, the discount rate) for this stock. What should you do?

A. Buy the stock since it overvalued

B. Sell the stock since it is undervalued

C. Sell the stock since it is overvalued

D. Buy the stock since it is undervalued