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

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

A. The security is overpriced and has a positive net present value.
B. The security is overpriced and has zero net present value.
C. The security is overpriced and has a negative net present value.
D. The security is underpriced and has a positive net present value.
E. The security is underpriced and has zero net present value.
F. The security is underpriced and has a negative net present value.

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