Stock FM has a historical return of a 14.25%, a standard deviation of 14.1% and a correlation of 0.51 with the market. The standard deviation of market return is 19.1% and the expected return is 15.13%. The risk-free rate is 5.63%. Which of the following statements is correct assuming CAPM holds? (4 decimals)

A) Stock FM is overpriced with a requires rate of return of 9.21%

B) Stock FM is underpriced with a requires rate of return of 9.21%

C) Stock FM is overpriced with a requires rate of return of 10.48%

D) Stock FM is underpriced with a requires rate of return of 10.48%

E) insufficient information