A stock has an expected return, based on market price, of 36.896. The beta of the stock is 3.1, the risk-free rate is 2% and the market risk premium is 10. Is the stock over, under, or correctly valued? undervalued since the stock's equilibrium return is less than its expected return overvalued since the stock's equilibrium return is less than its expected return undervalued since the stock's equilibrium return is greater than its expected return overvalued since the stock's equilibrium return is greater than its expected return None of the listed items is correct