20. The common stock of Alpha Manufacturers has a beta of 1.1 and an actual return of 14 percent. The risk-free rate of return is 4 percent and the market rate of return is 12 percent. Which one of the following statements is true given this information? (a) The actual stock return is below the Security Market Line. (b) The stock is over-valued. (c) To be correctly priced according to CAPM, the stock should have an expected return of 20 percent. 7 (d) The stock has less systematic risk than the overall market. (e) The actual stock return indicates the stock is currently under-valued