market and has an actual retum of 10.2 percent. This stock Assume the martiat rate of retums 10.1 percent and the risk-free rule of retumia 32 percent. Laxant stock has 2 percent les systematic rink than the is underpriced is correctly priced will plot below the security market line. will plot on the security market line. will plot to the right of the overall market on a security market line graph