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there is no other information, all info is on the problem 4. Stock M has a beta of 1.25 and an expected return of 11.75%.

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there is no other information, all info is on the problem
4. Stock M has a beta of 1.25 and an expected return of 11.75%. Stock K has a beta of 1.65 and an expected return of 12.3%. If the risk free rate is 3% and the market premium is 6%, are these stocks overpriced or underpriced and if so, by how much? How much would each one's beta have to be in order to be priced according to the market conditions

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