$7.$ X has an expected return of $16\%$ and a beta of $1\mathrm{.}0.$ Y has an expected of $12\%$ and a beta of $0\mathrm{.}25.$

The risk free rate is $8\%,$ According to CAPM, which of the follow statements are true?

I. Both X and Y are fairly priced.

II$.$ If X is correctly priced, Y is underpriced.

III. If Y is correctly priced, X is overpriced.

IV$.$ Both X and Y are overpriced.

A$.$ I only

B$.$ II only

C$.$ II and III only

D$.$ IV onl