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Stock Z has a beta of 0.70 and an expected return of 11.5%. If the risk-free rate is 5.5% and the market risk premium is

Stock Z has a beta of 0.70 and an expected return of 11.5%. If the risk-free rate is 5.5% and the market risk premium is 8%, is Stock Z overvalued or undervalued according to the CAPM (or SML)?

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