Question: a. rA = rRF + (rM - rRF)bA 12% = 5% + (10% - 5%)bA 12% = 5% + 5%(bA) 7% = 5%(bA) 1.4 =

a. rA = rRF + (rM - rRF)bA 12% = 5% + (10% - 5%)bA 12% = 5% + 5%(bA) 7% = 5%(bA) 1.4 = bA. b. rA = 5% + 5%(bA) rA = 5% + 5%(2) rA = 15%

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