QUESTION 7. The reward-to-risk ratio for stock A exceeds the reward-to-risk ratio of stock B. Stock A has a beta of 1.4 and stock B has a beta of 0 .90. This information implies that:

A. both stock A and stock B are correctly priced since stock A is riskier than stock B.

B. either stock A is underpriced or stock B is overpriced or both.

C. either stock A is overpriced or stock B is underpriced or both.

D. stock A is riskier than stock B and both stocks are fairly priced.

E. stock A is less risky than stock B and both stocks are fairly priced.

can you explain the reasoning behind this please. deep analysis please