The Security Market Line (SML) is a graphical representation of returns associated with beta. Choose the correct statement regarding to the SML.

A) If your estimated return is above the SML, the stock is overvalued.

B) You cannot use SML to understand if the stock is overvalued or undervalued.

C) If your estimated return is on the SML, the stock is overvalued.

D) If your estimated return is below the SML, the stock is overvalued.

E) None of the above are correct.