Consider the following companies:

US Open Corporation Return 8% Beta 0.88

British Open Ltd. Return 11% Beta 1.22

Masters, Inc. Return 10.5% Beta 1.30

The risk-free rate is 4%, while the expected return on the Market is 9%. Using this information, pick the correct statement.

The stock of Masters, Inc. is overpriced

The stock of US Open Corporation is overpriced.

The stock of British Open Ltd. is overpriced

The stock of Masters, Inc. is underpriced

None of the above