The risk-free rate is 4%. The expected market rate of return is 12%. If you expect stock X with a beta of 1.0 to offer a rate of return of 10%, 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

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