Fallweather Enterprises stock has an expected return of 15 percent and a beta of 1.3. The market return is 11 percent and the risk-free rate is 1.8 percent. This stock is _____ because the CAPM return for the stock is _____ percent.

Select one:

a. overvalued; 13.76

b. undervalued; 13.76

c. overvalued; 16.10

d. undervalued; 16.10

e. priced correctly; 15