The risk-free rate is 3% and the expected rate of return on the market portfolio is 8%. a. Calculate the required rate of return on a security with a beta of 2.16. (Do not round intermediate...

The risk-free rate is 3% and the expected rate of return on the market portfolio is 8%.

a.
Calculate the required rate of return on a security with a beta of 2.16.
(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

b.
If the security is expected to return 13%, is it overpriced or underpriced?