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Based upon analysis, you think the return of stock A will be higher, indicated as A*. In this case, you would be claiming that

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Based upon analysis, you think the return of stock A will be higher, indicated as A*. In this case, you would be claiming that the stock is Security Market Line 8 Expected Retur RA RM M A Rtree 0 0.2 0.4 0.6 0.8 12 14 16 18 2 2.2 Beta Oa. underpriced. Ob. risk adjusted. O c. similarly priced. d, overpriced

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