Assume the market rate of return is 10.1 percent and the risk-free rate of return is 3.2 percent. Lexant stock has 2 percent more systematic risk than the market and has an actual return of 10.2 percent. This stock:

A. is underpriced.

B. is correctly priced.

C. will plot below the security market line.

D. will plot to the left of the overall market on a security market line graph.

E. will plot on the security market line.