An analyst has estimated that the returns for an asset, conditional on the performance of the overall economy, are:

Return Probability Economic Growth

$5\%20\%$ Poor

$10\%40\%$ Average

$14\%40\%$ Good

The conditional expected returns on the market portfolio are:

Return Probabilit Economic Growth

$2\%20\%$ Poor

$10\%40\%$ Average

$15\%40\%$ Good

According to the CAPM, if the risk$-$free rate is $5\%$ and the risky asset has a beta of $1\mathrm{.}1,$ with respect to the market portfolio, the analyst should:

A$)$ sell $($or sell short$)$ the risky asset because its expected return is not sufficient to compensate for its systematic risk.

B$)$ buy the risky asset because the analyst expects the return on it to be higher than its required return in equilibrium.

C$)$ sell $($or sell short$)$ the risky asset because its expected return is less than equilibrium expected return on the market portfolio.

D$)$ none of the above