the risk-free rate is 4%. The expected market rate of return is 12%. If you expect stock X with a beta of 1.0 to offer a rate of return of 10%, you should

a. buy stock X because it is overpriced.

b. sell short stock X because it is overpriced.

c. None of the options, as the stock is fairly priced

d. sell short stock X because it is underpriced.

e. buy stock X because it is underpriced.