If a security plots below the security market line,it is:
A) ignoring all of the security's specific risk.
B) underpriced, a situation that should be temporary.
C) offering too little return to justify its risk.
D) a defensive security, which expects to offer lower returns.

Question

Quizplus · Accepted Answer

A security plotting below the security market line indicates it is offering too little return for its level of risk, meaning it is overvalued.

If a Security Plots Below the Security Market Line,it Is