Stock X has an expected rate of return of 13% and a beta of 1. If the riskless rate is 5% and the market expected rate of return is 10%, according to…

Stock X has an expected rate of return of 13% and a beta of 1.5. If the riskless rate is 5% and the market expected rate of return is 10%, according to the CAPM, this security is

underpriced.

overpriced.

fairly priced.

cannot be determined from the information provided.