Currently the risk-free rate is 6% and the expected return on the market portfolio is 11%, the expected return for 3 stocks as priced in the market are listed below with their estimate of beta.

Stock ... Expected Return ..... Beta

X .................... 14% .............. 1.5

Y .................... 12% .............. 2.0

Z .................... 10% .............. 0.8

Which of these stocks is overpriced?

	A.	X
	B.	Y
	C.	Z
	D.	None, they are all fairly priced.
	E.	None, they are all underpriced.

I got C but I am unsure.