Question: Stocks A and B are located on the security market line (they satisfy the CAPM). Stock A has expected return 22% and Beta 1.5, stock

Stocks A and B are located on the security market line (they satisfy the CAPM). Stock A has expected return 22% and Beta 1.5, stock 8 has expected return 14% and Beta 0.5. What can you say about stock C, whose Beta is 1 and whose expected return is 19%? Stock C is currently overvalued Stock C is correctly priced Cannot be determined Stock C is currently undervalued

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