You have observed the following returns over time (see the picture). Assume that the risk-free rate is 5% and the market risk premium is 4%. Calculate beta of Stock Y and its required rate of return. If Stock Ys expected return is 9%, is Stock Y undervalued, fairly valued, overpriced or overvalued?

7 You have observed the following returns over time (see the picture). Assume that the risk-free rate is 5% and the market risk premium is 4%. Calculate beta of Stock Y and its required rate of return. If Stock Y 's expected return is 9%, is Stock Y undervalued, fairly valued, overpriced or overvalued? * in (7 Points) Undervalued (Required rate of return =7,60%; Beta =0,65 ) Overpriced (Required rate of return =16,00%;;eta =2,00 ) Fairly valued (Required rate of return =7,60%; Beta =0,65 ) Overvalued (Required rate of return =7,60%; Beta =0,65 )