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Expected return on Metals stock is 16%. Market risk premium and the expected return on the market portfolio are 8% and 14%, respectively. Metals stock

Expected return on Metals stock is 16%. Market risk premium and the expected return on the market portfolio are 8% and 14%, respectively. Metals stock has a beta of 1.25. Is Metals stock undervalued or overvalued? Show your workings and explain.

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