You are considering investing in a COMPANY X share, and you decide to use the Capital Asset Pricing model in your analysis. The expected return on the share at its current market price is 9%. The expected return on the market portfolio is 8% and the risk-free interest rate is 2%. You will find from your calculations that the beta of the stock is 0.7.

Assuming the CAPM is valid and your calculations are correct, the stock would appear to be.....

a. underpriced.

b. overpriced.

c. market portfolio-like investment.

d. properly priced.

.....in the market