you forecast that a stock x will offer a rate of return of 12%. the risk-free rate is 4%. the market risk premium is 7%. if the beta of stock is 1.8, then stock x is you forecast that a stock x will offer a rate of return of 12%. the risk-free rate is 4%. the market risk premium is 7%. if the beta of stock is 1.8, then stock x is cannot be determined fairly priced overpriced underpriced