Use the figure for the question(s) below.Consider the following graph of the security market line: 
-Which of the following statements regarding portfolio "B" is/are correct? 1.Portfolio "B" has a positive alpha.
2.Portfolio "B" is overpriced.
3.Portfolio "B" is less risky than the market portfolio.
4.Portfolio "B" should not exist if the market portfolio is efficient.
Definitions:
Carrying Amount
The book value of an asset or liability, determined according to the relevant accounting standards.
Unamortized Discount
The portion of a bond's original issue discount (OID) that has not yet been amortized or expensed over the term of the bond.
Unamortized Premium
An unamortized premium refers to the remaining amount of a premium above the face value of a bond that has not yet been expensed over the bond's life.
Market Rate
The prevailing interest rate available in the marketplace for securities or loans at any given time.
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