Consider the CAPM: Assume the exprected return on the market is 10.1% and the risk-free rate is 3.2%. Sproul Inc. has 3% less systematic risk than the S&P 500, but has an actual return of 10.2%. Sproul Inc. _____

Group of answer choices

will plot below the security market line.

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

will plot above the security market line.

will plot on the security market line.

is correctly priced.