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Information about three stocks is provided in the following table: Stock Expected Return Beta Booraem Inc. 14.14% 1.65 Heisen Inc. 12.40% 1.21 Gutmann Inc. 10.46%

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Information about three stocks is provided in the following table: Stock Expected Return Beta Booraem Inc. 14.14% 1.65 Heisen Inc. 12.40% 1.21 Gutmann Inc. 10.46% 0.88 If the expected market return is 10.45% and the average risk-free rate is 1.32%, according to the capital asset pricing model (CAPM) and the security market line (SML), which of the three stocks is most likely overvalued? Gutmann Inc. Heisen Inc. Boora em Inc

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