3. Assume that the CAPM holds. Although you currently own shares of two well-known securities, A and B, you are interested in improving upon your portfolio of assets. From the currently available information, you are aware that the average historical market risk premium is 5.3% and that the return on T-Bills is 3%. You also have the following data: Asset i A B Pim -0.4 0.1 0.7 E(R;) 8% 2% 10% 8% Oi 10% 5% 18% 15% Market Portfolio (A) Asset A is undervalued and therefore I will long the asset. (B) Asset B is overvalued and therefore I will short the asset. (C) Asset C is undervalued and therefore I will long the asset. (D) (A) and (C) are true. (E) None of the above