Question: If a stock's return plots above the security line (SML), that means: A. the stock is overvalued B. the stock is undervalued C. the stock

If a stock's return plots above the security line (SML), that means:

A. the stock is overvalued

B. the stock is undervalued

C. the stock is correctly valued, but the SML is mis specified

D. you should sell the stock

E. the stock's price does not account for future dividends.

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