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RBC Bank's stock has a beta of.90 and an expected return of 8.00%. The risk-free rate of return is 2.5% and the market rate of

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RBC Bank's stock has a beta of.90 and an expected return of 8.00%. The risk-free rate of return is 2.5% and the market rate of return is 9.00%. Which one of the following statements is true given this information? Multiple Choice RBC Bank's stock has more systematic risk than the overall market. RBC Bank's stock is overpriced. The expected return on RBC Bank's stock based on the Capital Asset Pricing Model is 10.6%. The return on RBC's stock will graph above the Security Market Line. RBC Bank's stock is correctly priced

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