Currently the risk-free rate is 6% and the expected return on the market portfolio is 11%, the expected return for 3 stocks as priced in the market are listed below with their estimate of beta.
Stock ... Expected Return ..... Beta
X .................... 14% .............. 1.5
Y .................... 12% .............. 2.0
Z .................... 10% .............. 0.8
Which of these stocks is underpriced?