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Stock Y has a beta of 0.95, the risk-free rate is 3%, and the market risk premium is 8%. The probability state suggests that the

Stock Y has a beta of 0.95, the risk-free rate is 3%, and the market risk premium is 8%. The probability state suggests that the stock's expected return is 6%. Based on the CAPM, this stock is:

correctly valued

overvalued

undervalued

cannot be determined

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