Given the following information: The risk$-$free rate is $7\%,$ the beta of stock A is $1\mathrm{.}2,$ the beta of stock B is

$0\mathrm{.}8,$ the expected return on stock A is $13\mathrm{.}5\%,$ and the expected return on stock B is $11\mathrm{.}0\%.$ Further, we

know that stock A is fairly priced and that the betas of stocks A and B are correct. Which of the following

regarding stock B must be true?

a$.$

The price of stock A is too high.

b$.$

The expected return on stock A is too high.

c$.$

The expected return on stock B is too high.

d$.$

Stock B is also fairly priced.

e$.$

The price of stock B is too high