We have the following information on Stocks A and B. The risk-free rate is 5%, and the market risk premium is 6.25%. Assume that the market portfolio is correctly priced. Based on the reward-to-risk ratio, are Stocks A and B overpriced, underpriced, or correctly priced?

	Stock A	Stock B
Expected return	10%	15%
Beta	0.8	1.5

Select one:

a. A is underpriced; B is overpriced.

b. A is correctly priced; B is overpriced.

c. A is overpriced; B is underpriced.

d. A is correctly priced; B is underpriced.

e. Both stocks are correctly priced.