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:

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