Stock y has a beta of 105 and an expected return of 12, Financial Management

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Stock y has a beta of 105 and an expected return of 12

Stock Y has a beta of 1.05 and an expected return of 12%. Stock Z has a beta of 0.68 and an expected return of 10.26%. If the risk-free rate is 5% and market risk premium is 7%, are these stocks correctly priced in the market? If not, then which one is overvalued and which one is undervalued, or what is your investment strategy, which one will you buy and which one should you sell? Why? Please explain clearly.

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Financial Management: Stock y has a beta of 105 and an expected return of 12

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