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The risk-free rate is 7% and the expected market rate of return is 15%. You expect stock A with a beta of 0.8 to offer

The risk-free rate is 7% and the expected market rate of return is 15%. You expect stock A with a beta of 0.8 to offer a rate of return of 13% and stock B with a beta of 1.2 to offer a rate of 17%. You should

		sell short stock A and buy stock B.
		buy stock A and buy stock B.
		sell short stock A and sell short stock B.
		buy stock A and sell short stock B.
		none of the above, as both stocks are fairly priced.

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