Assume you are a Financial Analyst for Goldman Sachs and working on a stock recommendation for Stock A. Your calculations suggest a beta of 0.8 and and expected rate of return of 9% for this stock. The expected market rate of return is 11%. Based on this information you should recommend ___ Assume the rate on T-Bills is 6%.

1) buying stock A because it is overpriced

2) selling short stock A because it is overpriced

3) buying stock A because it is underpriced

4) selling short stock A because it is underpriced