You are considering investing in Smith Electronic's common stock. Based on your perception of Smith's riskiness, you will require a return of 8.5% on their stock. Smith's most recent beta is 1.20. The risk-free rate is currently 3.25%, while the market return is currently 7.75%. Based on these data, should you invest in Smith's stock?

no because smiths expected return is less than your required return

you are indifferent because smiths expected return is equal to your required return

yes because smiths expected return is equal to your required return

yes because smiths expected return exceeds your required return