The expected market rate of return is 14%, and the risk free rate is 5%. Stock A has a beta of 1.9. If the stock is currently priced to yield a return of 15% (expected return), then:

Select one:

a. The stock is underpriced

b. The stock is overpriced

c. The stock lies on the SML

d. The stock is fairly priced

e. The stock lies above the SML