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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 13.5% Matanzas 1.10 14.5% Pavilion 1.25 13.2% Galleon 1.60 18.1% Matanzas is overpriced. All of the stocks are underpriced. All of the stocks are overpriced. Pavilion is overpriced. SandCastle is overpriced

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