Given the following information: The risk-free rate is 6.5%, the beta of stock A is 1.35, the beta of stock B is 0.65, the expected return on stock A is 14.25%, and the expected return on stock B is 10.55%. 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) Stock B plots below the security market line.

B) Stock B plots on the security market line.

C) Stock B plots above the security market line.

D) Stock B is also fairly priced.

E) The price of stock B is overpriced.