are currently evaluating a potential stock purchase. As you are gathering information about the stock you notice a few things. First, you hat the expected rate of return on the market is 12%, and the risk free rate is 3.5%. The stock you are interested in has a beta of 0.8, s currently priced to yield a return on 12% (expected return). If this is true then, what must also be true? tone: . The stock is fairly priced The stock lies below the SML The stock is underpriced The stock is overpriced The stock lies on the SML Next You are currently evaluating a potential stock purchase. As you are gathering inf see that the expected rate of return on the market is 12%, and the risk free rate and is currently priced to yield a return on 12% (expected return). If this is true 2 Select one: O a. The stock is fairly priced O b. The stock lies below the SML O c. The stock is underpriced O d. The stock is overpriced O e. The stock lies on the SML