It is an estimated data on company A's return rate (Ra) and market return rate (Rm) obtained as A result of securities analysis.

The risk interest rate (Rf) is 6%. What is the relationship between E(Ra) and B. (beta)?

Situation probability Rm Ra

1 0. 2. 0 20 to 50

2 0 0 05.

3 0 0. 4. 15 20

4 0. 1-0. 15-30

Answer selection group

E(Ra) = 0.05 + 0.05 item a

E(Ra) = 0.04 + 0.06 item a

E(Ra) = 0.08 + 0.04 item a

E(Ra) =0.12 + 0.04 Item a

E(Ra) = 0.12 + 0.8 item a