Which one of the following stocks is over-priced if the risk-free rate of return is 3.0 percent and the market risk premium is 7.5 percent?

Stock	Beta			Expected Return
A		.66			9.25	%
B		1.12			8.57
C		1.27			15.63
D		1.46			13.95
E		1.45			17

Hint: A stock is "over-priced" means the observed expected return of the stock is lower than what is required by investors based on CAPM.

Stock D

Stock E

Stock B

Stock C

Stock A