QUESTION 11 The risk-free rate is 4 percent. The expected market rate of return is 11 percent. If you expect CAT with a beta of 0.8 to offer a rate of return of 10 percent, you should A. hold CAT because it is fairly priced. B. sell short CAT because it is overpriced. C. buy CAT because it is underpriced. D. sell stock short CAT because it is underpriced. E. buy CAT because it is overpriced