assume the risk free rate is 3.7% and the expected return on the market portfolio is 12.3%. based on a recent report in 2021, bgh corp. stock has a beta of 1.10 and a interest rate return of 12.5%. id bgh stock fairly valued? why or why not?

1. bgh cstock is overprice because bgh is plotted above the securities market line

2. cvs is fairly priced

3.no, . bgh cstock is overprice because bgh is plotted below the securities market line

4.no . bgh cstock is underprice because bgh is plotted above the securities market line