Question: What does it mean if a stock plots on a security market line ( SML ) graph to the left of the market portfolio? Multiple

What does it mean if a stock plots on a security market line

(

SML

)

graph to the left of the market portfolio? Multiple choice question. The stock is underpriced. The stock is overpriced. The stock has a beta less than

1

and has less market risk than the market portfolio. The stock has a beta greater than

1

and has more market risk than the market portfolio.

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