Question: Do not round intermediate calculations and round your final answer to two decimals, e.g., 32.09. Please include the formula if there is any and the

Do not round intermediate calculations and round your final answer to two decimals, e.g., 32.09.

Please include the formula if there is any and the process through which you get the answers for the questions with a text box. These are an important part of grades.

A stock has a beta of 0.8 and an expected return of 12%. The riskless rate is 2% and the market expected return is 9%. Is the stock correctly priced? Why?

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