Requesting formula help - Risk / Capm / beta

B

brad

Hi I am looking for help in creating a formula.

These are my variables:
Estimated Beta of stock is - 1.5
Current Stock price is - $50
Estimated price is - $60
Standard Deviation is - $2.50
Risk free rate of return is - 4%
Market risk premium is - 8%

Looking for the probability that the stock is overvalued?

Thank you,

brad
 

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