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The risk free rate is 4.70 percent and the market risk premium is 7.2 percent. The beta of a stock is 1.28 and the analyst's

The risk free rate is 4.70 percent and the market risk premium is 7.2 percent. The beta of a stock is 1.28 and the analyst's estimate of the stock's expected return is 14.8 percent. According to the Capital Asset Pricing Model, the stock is _______________________.

A.

Fairly priced
B.

Underpriced
C.

Cannot be determined.
D.

Overpriced

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