Given the following CAPM model and assume the expected market return E[RM] is 4% and the risk-free return Rf is 1%. E[Ri]=Rf+i(E[RM]Rf) a. Calculate the expected return for stock A with i=1 b. If stock A delivers a historical average return of 5%, is it a good investment? Explain c. Calculate the expected return for stock B with i=0 d. Will you prefer stock B or the risk-free asset? Explain