Question: You are examining three different shares. Share A has expected return 5.60%, beta 0.58, and volatility 10.00%. Share B has expected return 8.40%, beta 0.84,

You are examining three different shares. Share A has expected return 5.60%, beta 0.58, and volatility 10.00%. Share B has expected return 8.40%, beta 0.84, and volatility 18.00%. Finally, share C has expected return 12.40%, beta 1.46, and volatility 31.00%. The risk free rate is 1.80%, while the market price of risk is 7.50%. According to the CAPM, which share is undervalued?

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