ons attempted:0/15 of 15 1 Mark Use the following three statements to answer this question: 1. According to the Capital Asset Pricing Model (CAPM), an under-priced security has a negative alpha. 2. The expected rate of return of a security decreases proportionally with a decrease in the risk-free rate. 3. If BA= 2Bs, the required rate of return for stock A (KA) = 2 x required rate of return for stock B (KB) O a 1 and 3 O b. all are incorrect O call are correct O d. 1 only O e 1 and 2 sure