Design Interior's stock has an expected return of 11.00 percent and a beta of 1.4. The expected market return is 10.75 percent and the risk-free rate is 4.0 percent. This stock is _____ because the CAPM return for the stock is _____ percent.

A) greatly overvalued; 13.45

B) slightly overvalued; 12.91

C) priced correctly; 13.25

D) slightly undervalued; 12.91

E) greatly undervalued; 13.45