Fenway Corporation common stock has a beta of $1\mathrm{.}5.$ A security analyst forecasts an expected return of $15\%$ over the next year. The market risk premium is $8\%$ and the risk free rate is $4\%.$ In a CAPM framework, does the analyst believe that Fenway common stock is fairly priced?

a$)$Stock is fairly priced.

b$)$CAPM predicts $16\%,$ stock is undervalued.

c$)$CAPM predicts $16\%,$ stock is overvalued.

d$)$Stock is undervalued because return exceeds market risk premium.