A Stock with an Actual Return That Lies Above the Security

Multiple Choice

A stock with an actual return that lies above the security market line has

A) less systematic risk than the overall market.
B) more risk than warranted based on the realized rate of return.
C) yielded a return equivalent to the level of risk assumed.
D) more systematic risk than the overall market.
E) yielded a higher return than expected for the level of risk assumed.