Assume that the CAPM is a good description of stock price returns.The market expected return is 8% with 12% volatility and the risk-free rate is 3%.New news arrives that does not change any of these numbers, but it does change the expected returns of the following stocks:

Stock Expected Return Volatility Beta Taggart Transcontinental 8% 28% 1.2 Rearden Metal 13% 40% 1.7 Wyatt Oil 7% 20% 0.8 Nielson Motors 10% 32% 1.3 

represent buying opportunities?

1.Taggart Transcontinental

2.Rearden Metal

3.Wyatt Oil

4.Nielson Motors

A.2 & 4 only

B.1 only

C.2 & 3 only

D.1 & 2 only