Ex. Suppose r1=5%, Em = 13%, and Om = 20%. You are considering three fully diversified funds. Which of them are overvalued (bad buys) and which are undervalued (good buys)? Fund E (%) o(%) A 10 15 B 15 22 C 20 25 Security Market Line (SML) Ex. Suppose r1=5%, Em = 13%, and Om = 20%. You are considering three fully diversified funds. Which of them are overvalued (bad buys) and which are undervalued (good buys)? Fund E (%) o(%) A 10 15 B 15 22 C 20 25 Security Market Line (SML)