Question 4 Taylor, Inc., stock has a beta of 0.8 and an expected return of 9.3 percent. The risk-free rate is 2.1 percent and the market risk premium is 6.8 percent. This stock is because the CAPM retum for the stock is a. overvalued; 5.86 percent. b. overvalued; 7.54 c. undervalued; 5.44 d. undervalued; 5.86 e. undervalued, 7.54 Tayloc, lnc., stock has a beta of 0.8 and an expected return of 9.3 percent. The risk-free rate is 2.1 percent and the market risk premium is 6.8 percent. This stock is because the CAPM return for the stock is percont: a. overvalued; 5.86 b. overvalued; 7.54 c. undervalued; 5.44 d. undervalued; 5.86 e. undervaluod; 7.54