Home Interior's stock has an expected return of 13.2 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 overvalued or undervalued? because the CAPM return for the stock is percent. If Home Interior's expected return rose to 14.12%, the stock would be overvalued or undervalued? because the CAPM return for the stock is percent