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If the market expected return is 13% and the risk-free rate is 1%, which of the following stock(s) is/are overpriced according to the CAPM? If

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If the market expected return is 13% and the risk-free rate is 1%, which of the following stock(s) is/are overpriced according to the CAPM? If a portfolio consists of 30% of each stock and 10% of risk-free asset, what should the portfolio's expected return be if the CAPM holds? Current price Expected 1-yr forward price Beta Stock A $20 $27.5 3 Stock B $30 $33 0.6 Stock C $40 $48 2

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