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For the following stocks, which of the following statements is true? Assume the risk-free rate of interest is 6 percent and the market return is

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For the following stocks, which of the following statements is true? Assume the risk-free rate of interest is 6 percent and the market return is 13 percent. Stock Beta Expected Return Sand Castle0.90 11.8% Matanzas 1.10 14.5% Pavilion 1.25 15.8% Galleon 1.60 18.1% Galleon is overpriced. Sand Castle is overpriced. O Matanzas is overpriced. O All of the stocks are overpriced. O All of the stocks are underpriced

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