Use the Figure for the Question(s)below

Use the figure for the question(s) below.Consider the following graph of the security market line:
-Which of the following statements regarding portfolio "C" is/are correct? 1.Portfolio "C" has a negative alpha.
2.Portfolio "C" is overpriced.
3.Portfolio "C" is less risky than the market portfolio.
4.Portfolio "C" should not exist if the market portfolio is efficient.

A) 1 and 3
B) 2 and 4
C) 1,3,and 4
D) 3 only