The risk-free rate is 5%. The expected market rate of return is 11%. If you expect stock X with a beta of 2.1 to offer a rate of return of 15%, you should ()
A.
buy stock X because it is overpriced.
B.
sell short stock X because it is overpriced.
C.
sell short stock X because it is underpriced.
D.
buy stock X because it is underpriced.
E.
None of the options, as the stock is fairly priced.