Question 26 (1 point) The T-bill rate is 1.5% and the market risk premium is 4.5%, which of the following correct regarding stocks C and D valuation? Stock C Stock D Beta 1.4 22 Actual Return 6.5% 12.296 Stock C is undervalued because CAPM return is lower than actual return Stock D is undervalued because CAPM return is higher than actual return. Stock C is overvalued because CAPM return is higher than actual return. Stock D is overvalued because CAPM return is higher than actual return. What does CAPM say about returns on Apple, PNC and Estee stocks? Apple PNC Estee SEP Return Beta Std. Der 8.81 1.06 25.71 0.12 0.14 8.14 0.87 0.95 13.02 2.54 1 5.12 T-bill 1.09 0 0 Apple Return = 2.63%, PNC Return = 1.22%, Estee Return - 2.51% Apple Return - 2.83%, PNC Return = 1.52%, Estee Return = 3.51% Apple Return - 1.63%, PNC Return - 1.02%. Estee Return = 1.51% Apple Return - 2.64%, PNC Return - 1.299, Estee Return - 2.01%