Question: Given the Security Market Line (SML): E(Ri) = 0.05 + 0.04 i, which of the below asset(s) is(are) overpriced? - Asset A has a beta

Given the Security Market Line (SML): E(Ri) = 0.05 + 0.04 i, which of the below asset(s) is(are) overpriced?

- Asset A has a beta of 1.3 and an estimated return of 9.9%.

- Asset B has a beta of 0.9 and an estimated return of 8.8%.

- Asset C has a beta of 0.8 and an estimated return of 8.2%.

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