a You are considering two stocks: "A" and "B". Based on your analysis, you believe that stock "A" will earn a return of 10% and stock w earn a return of 8% next year. The beta of stock Ais 1.2, while the beta of Bis 0.8. The risk-free rate is 2 percent and the market risk premium is equal to 7 percent. Assuming that both stocks have been priced using CAPM, Which of the following choices is correct? Both stocks are undervalued ob Stock A is undervalued, while stock B is fairvalued c. Both stocks are overvalued od Stock A is undervalued while stock B is overvalued O. Stock A is overvalued white stock B is undervalued Previous page 13 14 15 16 17 Next page Hide Stop sharing Portorio is sharing your screen 29-C SI