Question: A security has an expected return the falls above the security market line. What must be true about this security? A. The security is overpriced

  1. A security has an expected return the falls above the security market line. What must be true about this security?

    A.

    The security is overpriced and has a negative net present value.

    B.

    The security is overpriced and has a postive net present value.

    C.

    The security is underpriced and has a negative net present value.

    D.

    The security is underpriced and has a positive net present value.

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