CAPM

Hello sir.

https://opentuition.com/topic/mcq-capm/

here you stated that it is overpriced because the MV decreases.
So this is my understanding: Please let me know if im correct or wrong.

Security X provides a return of 12%

Suppose Future receipt= 100.
Discounting using 12%, 100/0.12=833
So the MV= 833

Now we know that the return is actually 15.6%
so, future receipt= 100
discounting, 100/0.156= 641
Actual MV= 641

*The market value is supposed to be 641, but it 833. So it is overvalued/overpriced*