Company A's Historical Returns for the Past Three Years Were

Multiple Choice

Company A's historical returns for the past three years were 6 percent, 15 percent, and 15 percent. Similarly, the market portfolio's returns were 10 percent, 10 percent, and 16 percent. According to the security market line (SML) , Stock A was

A) overpriced.
B) underpriced.
C) correctly priced.
D) More information is needed.