Is Company A overpriced or underpriced? How can you tell? [Remember, the graph shows returns on the y-axis and prices and returns are inversely related.] How will changes in demand for Company A's stock restore correct pricing relative to the SML? Your response must be at least three sentences in length.

Based on the SML, a stock with a beta of 1.2 has a required return of 12.4%. Company A, however, has an expected return of 10%. - Is Company A overpriced or underpriced? How can you tell? [Remember, the graph shows returns on the y-axis and prices and returns are inversely related.] - How will changes in demand for Company A's stock restore correct pricing relative to the SML? Your response must be at least three sentences in length