An analyst at CAPM Research Inc. is projecting a return of 21% on Portfolio A. The market risk premium is 11%, the volatility of the market portfolio is 14%, and the risk-free rate is 4.5%. Portfolio A has a beta of 1.5. According to the capital asset pricing model, which of the following statements is true?

1. The expected return of Portfolio A is equal to the expected return of the market portfolio

2. The return of Portfolio A has lower volatility than the market portfolio.

3. The expected return of Portfolio A is less than the expected return of the market portfolio

4. The expected return of Portfolio A is greater than the expected return of the market portfolio