Recently you have received a tip that the stock of Bot $61 per share over the next year. You know that the armal the 90-day T-bill rate has been yielding 3.75% pot year over will you purchase the stock?

1. Yes, because it is overvalued.
2. No, because it is overvalued.
3. No, because it is undervalued.
4. Yes, because it is undervalued.

e.Yes, because the expected return equals the estimated retum.