According to the security market line, Asset A's required rate of return is 4.77%. You calculate the expected return of Asset A as 5.4%. Given this information, do you think Asset A is a good investment for the coming period? Does your answer account for the risk of A in addition to the return on A? How?

Other information if needed:

Risk free rate of return=1.2%

Beta(A)=1.2317

E(Rmarket)=4.1%

Std. Dev.(A)=6.86%

Std. Dev(market)=5.44%

Covariance(A,M)=29.57