Stock MRK has an expected return of $16\%$ and a beta of $1\mathrm{.}25.$ The expected return on the market portfolio is $15\%,$ and the current risk$-$free rate is $8\%.$ Based on the CAPM, which of the following statements is correct?

A$.$ MRK$\text{'}$s alpha is $-0\mathrm{.}75\%$

B$.$ MRK$\text{'}$s alpha is $0\mathrm{.}48\%$

C$.$ MRK is underpriced

D$.$ MRK is on the SML