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Can you answer and explain the question? Ybarra stock has a beta of 1.63 and an expected return of 13.1 percent. The risk-free rate of

Can you answer and explain the question? Ybarra stock has a beta of 1.63 and an expected return of 13.1 percent. The risk-free rate of return is 1.5 percent, and the market rate of return is 8.2 percent. Which one of the following statements is true given this information?

The return on Ybarra stock will graph above the security market line.

Ybarra stock is overpriced.

The expected return on Ybarra stock based on the capital asset pricing model is 8.2 percent.

Ybarra stock is correctly priced.

Ybarra stock has more systematic risk than the overall market.

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