Consider stock S in the following plot of the security market line (SML). Assuming that the CAPM holds and that your objective is to earn high investment return, you would: A. Sell stock S because it is overvalued (with reference to the CAPM); as a result you would expect the price of S to decline and S's risk premium to increase (for the beta given) towards the SML. a Buy stock S because it is undervalued (with reference to the CAPM); as a result you would expect the price of S to decrease and S's risk premium to increase (for the beta given) towards the SML. c. Sell stock S because it is undervalued (with reference to the CAPM); as a result you would expect the price of S to increase and S's risk premium to increase (for the beta given) towards the SML. o. Sell stock S because it is overvalued (with reference to the CAPM); as a result you would expect the price of S to increase and S's risk premium to increase (for the beta given) towards the SML