Suppose you observe the following situation:

Security T22.5 T15.9

Beta 1.94 0.72

Expected Return 22.5 15.9

Requirement-A.If the current market data shows that the risk-free rate is 4.16 percent, are these securities correctly priced?<1 mark>

Requirement-B.What would the risk-free rate have to be if these securities are correctly priced?<1 mark>

Requirement-C.If these two securities are correctly priced, find the market risk premium (using the findings of Requirement-B).<1 mark>

Requirement-D.Draw the Security Market Line (SML) with clear labels, and plot these two securities on the graph along with the market and risk-free rate (using the findings of Requirements B and C).<1 mark>