Question: 6) Both assets A and B plot on the SML. Asset A has an expected return of 15% and a beta of 1.7. Asset B

 6) Both assets A and B plot on the SML. Asset

A has an expected return of 15% and a beta of 1.7.

6) Both assets A and B plot on the SML. Asset A has an expected return of 15% and a beta of 1.7. Asset B has an expected return of 12% and a beta of 1.1. What is the risk-free rate of return? A) 5.0% B) 6.5% C) 11.5% D) It cannot be determined from this information

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