The reward-to-risk ratio for stock A is less than the reward-to-risk ratio of stock B Stock A has a beta of 0.82 and stock B has a beta of 1.29 This information implies that: Both stock A and stock B are correctly priced since stock A is riskier than stock B Stock A is less risky than stock B and both stocks are fairly priced. Stock A is riskier than stock B and both stocks are fairly priced. Ether stock A is underpriced or stock B is overpriced or both. Either stock A is overpriced or stock B is underpriced or both