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QUESTION 49 Assuming that the S&P500 average annual return is 14% with a beta of 1, the risk-free rate is 5%, and Asset X has

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QUESTION 49 Assuming that the S&P500 average annual return is 14% with a beta of 1, the risk-free rate is 5%, and Asset X has an average annual return of 20% with a beta of 1.5, then Asset X O A. Lies above the Capital Market Line. B. Lies above the Security Market Line. OC Lies below the Security Market Line. O D. Lies below the Capital Market Line. QUESTION 50 Given the information from Question 49, in order to make profits investors would O A Buy Asset X as it is undervalued. OB. Sell Asset X as it is undervalued. C. Buy Asset X as it is overvalued. D. Sell Asset X as it is overvalued

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