Please use excel to solve and shows the steps.

M. o C A B D E F G H K L N 1 Unlike the other deliverables, only answer for the first question will be provided for this deliverable. 2 All of the stocks in the table below are priced correctly according to CAPM. 3 Stock Beta Elri) 4 A 0.2 0.036 5 B 0.3 0.044 6 0.8 0.084 7 D 1.3 0.124 8 E 1.5 ? 9 F 2.1 ? 10 G 2.5 ? 11 12 Answer the following questions with hints provided. 13 1. Find the expected return for the risk free asset. (Rf = 2%) 2. Find the expected return for the market portfolio. 14 Hint: Do this in two steps. 15 a) Use the difference of any pair of assets to infer the market risk premium [E(Rm - Rf)]. 16 b) Use CAPM and the market risk premium derived in a) to back out the Rf 17 18 19 20 21 22 23 24 25 26