The risk$-$free rate is $7\%.$ The expected market rate of return is $16\%.$ If you expect a stock with a beta of $1\mathrm{.}3$ to offer a rate of return of $17\%,$ you should:

a$.$ sell short the stock because it is underpriced.

b$.$ buy the stock because it is underpriced.

c$.$ buy the stock because it is overpriced.

d$.$ None of the options, as the stock is fairly priced.

e$.$ sell short the stock because it is overpriced.