17. Security market line (SML) Assume that the risk-free rate, Re, is currently 10% and that the market retum, m. is currently 15% a. Calculate the market risk premium. b. Given the previous data, calculate the required retum on asset A having a beta of 0.2 and asset B having a beta of 1.3. a. The market risk premium is %. (Round to one decimal place.) b. If the beta of asset A is 0.2, the required return for asset Ais %. (Round to one decimal place.) If the beta of asset B is 1.3, the required return for asset Bis %. (Round to one decimal place.) 18. Integrative Risk, return, and CAPM Wolff Enterprises must consider one investment project using the capital asset pricing model (CAPM) Relevant information is presented in the following table. (Click on the icon located on the top-right comer of the data table below in order to copy its contents into a spreadsheet.) Item Risk-free asset Market portfolio Project Rate of return 6% 10% Beta, 0.00 1.00 1.74 a. Calculate the required rate of return for the project, given its level of nondiversifiable risk b. Calculate the risk premium for the project, given its level of nondiversifiable risk. a. The required rate of return for the project is % (Round to two decimal places) b. The risk premium for the project is %. (Round to two decimal places