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The risk free rate is 1% and the market risk premium is 10%. You are given information about 3 other assets: Asset ER SD Beta

The risk free rate is 1% and the market risk premium is 10%. You are given information about 3 other assets:

Asset ER SD Beta
A 2 20 0
B 16 20 2
C -5 20 -1

A) Classify the 3 assets as underpriced/overpriced/correctly priced according to the CAPM.

B) If you had to buy 1 of these 3 assets to hold by itself, which would you buy?

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