The risk-free rate is 7%. The expected market rate of return is 15%. X corporate bonds are yielding 9%. If you expect stock X with a beta of 1.3 to offer a rate of return of 16.5%, you should buy stock X because it is underpriced. buy stock X because it is overpriced. sell short stock X because it is overpriced. none of the these, as the stock is fairly priced. sell stock short X because it is underpriced