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Assume CAPM is a correct model, which of the following statement is correct? a. The expected return of a fairly priced stock should lie above

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Assume CAPM is a correct model, which of the following statement is correct? a. The expected return of a fairly priced stock should lie above the SML b. The beta of an overpriced stock should be less than 1 O c. The expected return of an over-priced stock should lie below the SML The beta of an overpriced stock should be greater than 1 Od. O e. The beta of a fairly priced stock should equal to 1

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