Assume that the risk-free rate is 6% and the expected market return is 16%. The expected returns and the betas of the following 4 securities are given below:

Stock	Exp.return	Beta
A	16%	1.2
B	22%	1.4
C	14%	0.8
D	11%	0.6

Which security/securities is/are under-priced (i.e., therefore being a good investment)?

a.

Stocks A and D

b.

Stocks A and B

c.

Stocks B and D

d.

Stock A

e.

Stock B

f.

Stock D

g.

Stocks C and D

h.

Stocks A and C

i.

Stocks B and C

j.

Stock C