1. The rate of return on the risk-free asset is 3 percent. What is the expected return of the overall stock market if the market risk premium is 5 percent?(Continuing from the previous problem, note that BFA Inc. has a beta of 1.3. What is the required rate of return for the BFA Inc.? (Use the market data, e.g. risk-free rate, etc. from the previous problem.) the answer to this is 9.5%)A. 10.0%B. 13.7%C. 10.9%D. 8.0%E. 8.0%F. 8.9%