The Treasury bill rate is 3.1%, and the expected return on the market portfolio is 10.2%. Use the capital asset pricing model. Question: If an investment with a beta of 1 offers an expected return of 7.8%, does it have a positive NPV?

Group of answer choices

a)No; The opportunity cost of capital is lower than 7.8 percent. Therefore, the investment has a negative NPV

b)Yes; The opportunity cost of capital is lower than 7.8 percent. Therefore, the investment has a positive NPV

c)No; The opportunity cost of capital is higher than 7.8 percent. Therefore, the investment has a negative NPV

d)Yes; The opportunity cost of capital is higher than 7.8 percent. Therefore, the investment has a positive NPV