Question: Below is a plot of expected returns ( y - axis ) against Beta ( x - axis ) for securities . The blue line

Below is a plot of expected returns (y-axis) against Beta (x-axis) for securities.
The blue line is the Security Market Line (SML) according to CAPM. A and B are
two securities. Which statements regarding A and B are correct? Select all two
correct answers.
(a) A has a positive alpha
(b) A is overpriced
(c) B has a positive alpha
(d) B is overpriced
Below is a plot of expected returns (y-axis) against Beta (x-axis)

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