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The common stock of Alpha Manufacturers has a beta of 15 and an actual expected return of 15.27 percent. The risk free rate of return

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The common stock of Alpha Manufacturers has a beta of 15 and an actual expected return of 15.27 percent. The risk free rate of return 4 percent and the market rate of returns 12 percent. Which one of the following statements is TRUEven this information O A The rewardto skratio of the stocks 0.003 to be correctly priced according to CAPM the stock should have an expected return of 9.2 percent C. The stochastic in the overall manet D. The actual expected stock return indicates the stock is currently overpriced

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