Design Interior's stock has an expected return of 10% and a beta of 1.1. The market return is 9.5% and the risk-free rate is 2.0%. This stock is ________ because the CAPM return for the stock is ________%.

Multiple Choice

• greatly overvalued; 13.45

• slightly overvalued; 10.25

• priced correctly; 9.5

• slightly undervalued; 10.25

• greatly undervalued; 13.45