1. An analyst gathered the following information about stock A and the market index: Based only on the information above, the analyst's most appropriate conclusion is that the stock is:
A.Overvalued because the required rate of return for the stock is 15.5%.
B.Overvalued because the required rate of return for the stock is 17.0%.
C.Undervalued because the required rate of return for the stock is 15.5%.