Stock A has an expected return of 12%, a beta of 1.2, and a standard deviation of 20%.Stock B also has a beta of 1.2, an expected return of 10%, and a standard deviation of 15% Portfolio AB has $900,000 invested in stock A and $300,000 invested in stock B The correlation between the two stocks returns is zero Which of the following statements is correct? Portfolio AB's beta is lessthan 1.2 The stocks are not in equilibrium based on the CAPM. If A is Valued correctly, Then B is Overvalued The stocks are not is equilibrium based on the CAPM; If A is valued correctly; then B is undervalued. Portfolio AB's expected return is 11.0%