Toris Stock FM has a historical return of 14.25%, a standard deviation of 14.15 and a correlation of 0.5 with the market. The standard devian of market returns is 19.1%, and the expected return is 15.13%. The risk-free rate is 5.63%. Which of the following statement is corred assuming CAPM holds (Please retain at least 4 decimal places in your calculations and at least 2 decimal places in the final awet) O a Stock FM is overpriced with a roqured rate of return of 9 21% Stock FM is underpriced with a required rate of return of 9.21% ocStock FM is overpriced with a required rate of return of 10 48% Od Stock FM is underpriced with a required rate of return of 10 48% Qe Insufficient information re 5 9 Previous page Next page