In a press conference yesterday, Lindsey stated that she expects her company will earn a 12 percent return next year. The expected return on the market is 8 percent, and the risk-free rate is 3 percent. If Lindsey's firm has a beta coefficient of 1.2, compute the firm's expected rate of return using the Capital Asset Pricing Model and determine whether Lindsey believes her firm to be over- or undervalued. 9%, undervalued O9%, overvalued 13.8%, undervalued 13.8%, overvalued