According to the CAPM, what can we conclude about the following situation?

Asset $/$ Portfolio

Expected Return

Beta

Risk$-$free

$3\%$

$0\mathrm{.}0$

Portfolio X

$9\%$

$1\mathrm{.}2$

Portfolio Y

$12\%$

$2\mathrm{.}0$

Group of answer choices

A$.$ Both Portfolios X and Y are fairly priced.

B$.$ Both Portfolios X and Y are over priced.

C$.$ Both Portfolios X and Y are under priced.

D$.$ Portfolio X is over priced relative to Portfolio Y$.$

E$.$ Portfolio X is under priced relative to Portfolio Y$.$