Suppose the mean rate of returns for the following three risky assets A, B, and C are 0.08, 0.10, and 0.12, respectively. It is also known that E(r_M) = 0.14 and _M= 0.16, where M refers to the market portfolio, which is efficient. Moreover, the slope of the capital market line is 7/16.

(Keep 4 decimal places to your answers.)

(a) Find the risk-free rate r_f . _____________

(b) Find the respective beta values A, B , and C.

_A: ; _______ _B : ;_________ _C: ;________________

(c) Determine iM for i = A, B, C, respectively.

_AM : ;_________ _BM : ; ________ _CM :____________