Home Interior's stock has an expected return of 12.89 percent and a beta of 1.28. The market return is 10.7 percent and the risk-free rate is 2.8 percent. This stock is _____ because the CAPM return for the stock is _____ percent. Answer a. greatly overvalued; 16.50 b. slightly overvalued; 12.91 c. priced correctly; 12.89 d. slightly undervalued; 12.91 e. greatly undervalued; 16.50