The SML shows the return needed given risk as measured by beta. In the lectures related to CAPM, I reviewed situations where a stock might be mispriced relative to CAPM.

Given the relationship with the security mark line (SML), if a stock is properly priced relative to CAPM , where would it plot on the graph relative to the SML?

Group of answer choices

on the Y-axis

on the security market line

below the security market line

above the security market line