$5.$ Security Market Line. Assume that the risk$-$free rate, RF$,$ is currently $4\%$ and that the market return, rm$,$ is currently $10\%.$

a$.$ Draw the security market line $($SML$)$ on a set of $$nondiversifiable risk $($x$-$axis$)$required return $($y$-$axis$)$ axes.

b$.$ Calculate and label the market risk premium on the axes in part a$.$

c$.$ Given the previous data, calculate the required return on asset A having a beta of $\mathrm{.}8$ and asset B having a beta of $1\mathrm{.}2.$

d$.$ Draw the betas and required returns from part c for assets A and B on the axes in part a$.$ Label the risk premiums associated with each of these assets and discuss them.