An analyst has estimated that the returns for an asset, conditional on the performance of the overall economy, are:The conditional expected returns on the market portfolio are:According to the CAPM, if the risk-free rate is 5% and the risky asset has a beta of 1.1, with respect to the market portfolio, the analyst should: —— 财会经济>CFA特许金融分析师 > CFA考试（Level Ⅰ）

单选题 编号：2686166

1. An analyst has estimated that the returns for an asset, conditional on the performance of the overall economy, are:

The conditional expected returns on the market portfolio are:

According to the CAPM, if the risk-free rate is 5% and the risky asset has a beta of 1.1, with respect to the market portfolio, the analyst should:

A.Sell (or sell short) the risky asset because its expected return is less than equilibrium expected return on the market portfolio.
B.Buy the risky asset because the analyst expects the return on it to be higher than its required return in equilibrium.
C.Sell (or sell short) the risky asset because its expected return is not sufficient to compensate for its systematic risk.