Question #1: Required Return on Equity [8 Points] For this question assume that the expected return on the market E(rm) is equal to 9.2% and the current risk free rate (rf) is 2.6%. (a) Calculate the required rate of return on equity (k) for (i) Stock A with a beta () of 0.70 [2 Points] (ii) Stock B with a beta () of 1.35 [2 Points] (b) Assume that the risk-free rate decreases from 2.6% to 2.4% percent (with all other variables remain unchanged). Redo Part (a). [2 Points] (c) Assume that the expected return on the market rises from 9.2% to 9.9% (the risk-free rate returns to 2.6% and all other variables remain unchanged). Redo Part (a). [2 Points]