Suppose that the relevant equilibrium model is CAPM and the risk-free rate is 4%. Total return variance of a stock return could be decomposed into systematic (i.e. market risk) variance and firm specific variance. Consider the following assets:

Asset	Expected Return	Total Return Variance	Firm Specific Variance
A	10.00%	0.3844	0.2548
B	9.00%	0.5476	0.4576
C	14.00%	0.3600	0.0000
D	8.50%	1.4225	0.8600

Suppose that asset C has a beta of 1 and is correctly priced. Is asset D correctly priced? If not, overpriced or underpriced? Show your calculation.