only need an answer to 3 its not c or D

Stock "A" has a level of systematic risk, Beta_A =1.5, and statistics show that the expected return on the market portfolio is 12% and the risk-free rate is 4%. The equilibrium rate of return for A is, A. 4% B. 10% C. 12% D. 16% E. 20% Stock "A" has a level of systematic risk, Beta A=1.5, and statistics show that the expected return on the market portfolio is 12% and the risk-free rate is 4%. If Stock "A" has a disequilibrium rate of return equal to 12%, you would a. Conclude that it is over-priced b. Conclude that it is under-priced c. Expect stock "A" to be sold in the market to restore equilibrium d. Both a and c e. Not enough information to tell Stock "A" has a level of systematic risk, Beta_ A=1.5, and statistics show that the expected return on the market portfolio is 12% and the risk-free rate is 4%. "A" has an observed rate of return of 12%. Which of the following statements are true regarding A 1 Its Treynor ratio is lower than Treynor's ratio for M II It will be sold in the "market" to restore equilibrium III It will have a lower Sharpe ratio than M a. I only b.ll only c. I, II, and III d.I and II only e. III only