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Stock XYZ has an expected return of 3.0%. The S&P500 has an expected return of 9.0%. The riskless rate is 8.0% and XYZ 's beta

Stock XYZ has an expected return of 3.0%. The S\&P500 has an expected return of 9.0%. The riskless rate is 8.0% and XYZ 's beta is 8.0. is XYZ overpriced or underpriced according to CAPM? Answer 1 for underpriced and 1 for overpriced

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