A risky portfolio has an expected return of $\mathrm{.}12$ and a standard deviation of $\mathrm{.}20$

If the capital allocation line $($CAL$)$ has a slope of $0\mathrm{.}5,$ what must be the return on the risk$-$free asset?

$0\mathrm{.}012($or $1\mathrm{.}2\%)$

$0\mathrm{.}02($or $2\%)$

$0\mathrm{.}04($or $4\%)$

$$im $10\%$

$0\mathrm{.}60($or $60\%)$

$0\mathrm{.}03($or $3\%)$