The common stock of Alpha Manufacturers has a beta of 1.14 and an actual expected return of 15.26 percent. The risk-free rate of return is 4.3 percent and the market rate of return is 12.01 percent. Which one of the following statements is true given this information? O The actual expected stock return will graph below the Security Market Line. O To be correctly priced according to CAPM, the stock should have an expected return of 21.95 percent O The stock has less systematic risk than the overall market. O The actual expected stock return indicates the stock is currently underpriced