Problem:
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.
Requirement:
Question: 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.
Note: Please provide full description.