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Consider the CAPM: Assume the exprected return on the market is 10.1% and the risk-free...

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Finance

Consider the CAPM: Assume the exprected return on the market is 10.1% and the risk-free rate is 3.2%. Sproul Inc. has 3% less systematic risk than the S&P 500, but has an actual return of 10.2%. Sproul Inc. _____

Group of answer choices

will plot below the security market line.

will plot to the right of the overall market on a security market line graph.

will plot above the security market line.

will plot on the security market line.

is correctly priced.

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