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The common stock of PDS has a beta of.98 and an expected return of 12.34%. The risk-free rate of return is 4.1% and the market

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The common stock of PDS has a beta of.98 and an expected return of 12.34%. The risk-free rate of return is 4.1% and the market rate of return is 11.65%. Which one of the following statements is true given this information? Multiple Choice PDS stock has more systematic risk than the overall market O The return on PDS stock will graph below the Security Market Line. The expected return on PDS stock based on the Capital Asset Pricing Model is 15.52% o O PDS stock is correctly priced. PDS stock is underpriced

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