The expected return on a stock with a beta of 3.2, based on market price, is 17.3%. Is the stock over, under, or correctly valued if the risk free rate is 3% and the market risk premium is 7%

cion 10 e expected return on a stock with a beta of 3.2, based on market price, is 17.3%. Is thes overvalued since the stock's equilibrium return is greater than its expected return undervalued since the stock's equilibrium return is greater than its expected return overvalued since the stock's equilibrium return is less than its expected return undervalued since the stock's equilibrium return is less than its expected return None of the listed items is correct Moving to another question will save this response