consider the following information on stock C and D:

stock c

expected return: 10%

beta: 1.2

SD of returns: 16%

stock D

expected return: 8%

beta: 0.8

SD of returns: 10%

the expected return on the market is 7% and the riskless rate is 2%

which of the following statemets is true?

a) both stocks are underpriced

b) stock D ranks better than C using Sharpe measure

c) stock D ranks better than C using the Treynor measure

d) all of the above are true

e) only b and c are true