Suppose the current market return is 11%, the risk-free rate is 4.5%, and the beta for the company is 2. If the expected return for the company stock is 18.5%, should you buy or sell, and why? Show your work.
Group of answer choices
It is overvalued and you should invest
Since the stock's alpha is zero, it is correctly valued
It is undervalued and you should not invest
It is overvalued and you should not invest
It is undervalued and you should invest