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3. Security market line (SML) Assume that the risk-free rate, F is currently 9% and...

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Finance

3. Security market line (SML) Assume that the risk-free rate, F is currently 9% and that the market return, rq, is currently 13%.

a. Calculate the market risk premium. b. Given the previous data, calculate the required return on asset A having a beta of 0.8 and asset B having a beta of 1.3. a. What is the market risk premium?

% (Round to one decimal place.)

b. If the beta of asset A is 0.8, what is the required return for asset A?

% (Round to one decimal place.)

If the beta of asset B is 1.3, what is the required return for asset B?

% (Round to one decimal place.)

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