Question #1: Required Return on Equity [8 Points] For this question assume that the expected return on the market E(rM) is equal to 12.6% and the current risk free rate (rf) is 2.4%. (a) Calculate the required rate of return on equity (k) for (i) Stock A with a beta () of 0.7 [2 Points] (ii) Stock B with a beta () of 1.4 [2 Points] (b) Assume that the risk-free rate decreases from 2.4% to 1.8% percent (with all other variables remain unchanged). Redo Part (a). [4 Points]