Question

Stock x is priced in the market to give an expected return of 8.1% and has a beta of 0.5. Stock y has an expected return in the market of 11.3% and a beta of 1.2. Stock z has an expected return in the market of 16.9% and a beta of 1.9. The market risk premium is 7% and the risk-free rate is 4%, which of these stocks is underpriced in the market

Answer 1

stock x is the answer mate

Answer 2

Stock x is answer friend