A stock that historically earned $10\%$ per year has a CAPM Beta of $1\mathrm{.}2$ and an SMB beta of $1\mathrm{.}5.$ If the risk$-$free rate has been reliably $1\%$ per year and will likely remain so$,$ while the equity risk. premium is expected to be $6\%$ and the SMB premium $2\%,$ which of the following situations do you believe will occur and why?

A$)$ Investors that trust the CAPM will sell the stock to investors that trust a $2-$factor model including SMB$,$ because the sellers will perceive the stock overvalued and the buyers fairly valued

B$)$ Investors that trust the CAPM will buy the stock from investors that trust a $2-$factor model including SMB$,$ because the seliers will perceive the stock overvalued and the buyers fairly valued

C$)$ Investors that trust the CAPM will sell the stock to investors that trust a $2-$factor model including SMB$,$ because the sellers will perceive the stock overvalued and the buyers undervalued

D$)$ Investors that trust the CAPM will buy the stock from investors that trust a $2-$factor model including SMB$,$ because the sellers will perceive the stock overvalued and the buyers undervalued

E$)$ Either investor type might sell to the other as they will both perceive the stock as fairly valued and only trade on liquidity demands