Consider a stock X that is traded on a Tokyo Stock Exchange (TSE). An analyst is modeling expected returns on the stock using the Fama-French-Carhart factor specification (FFC). The following table shows the estimates of the factor betas calculated by the analyst:

Factor Portfolio	Beta of X with respect to Factor Portfolio
Mkt	-0.25
SMB	0.78
HML	-0.45
PR1YR	0.05

You are given the following five statements about the stock and the corporation trading this stock:

(A) The corporation that is trading stock X has a market value that is less than the 50th percentile of all firms traded on the TSE.

(B) The return on stock X in the prior calendar year was less than the 30th percentile of all firms traded on the TSE.

(C) In the prior calendar year, stock X was not traded on the TSE.

(D) The corporation that is trading stock X has a Book-to-Market ratio that is greater than the 70th percentile of all firms traded on the TSE.

(E) The expected return on the market portfolio is less than the risk-free interest rate.

a) Determine which of the following statements is true. Explain why.

b) Provide the explanation why other statements are wrong.