Kirtland Signature Inc. has the expected return of 20 percent. The stock has a beta of 1.4. The risk-free rate is 7% and the market risk premium is 10%. Should you buy this stock?

a. No because the expected return on the stock is above the SML.

b. No because the expected return on the stock is below the SML.

c. Yes because the expected return on the stock is above the SML.

d. Yes because the expected return on the stock is below the SML.