Wiley WSM

Forecast return 12%. 11%

Standard deviation of returns 8%. 10%

Beta 1.5. 1.0

T-bill rate is 4.00%

The market risk premium is 6.00%

Using the Capital asset pricing model, are Wiley's and WSM Inc property priced?

A)They are both overpriced

B)They are both underpriced

C)Wiley's is underpriced and WSM Inc. is overpriced

D) Wiley's is overpriced and WSM Inc. is underpriced

Please explain