Consider the data on expected returns and betas for a variety of asset

Consider the data on expected returns and betas for a variety of assets in the table below. What is the expected return on shares of Bank of America using the SML?

Asset Expected Return Beta
Bank of America 0.9
Risk Free Asset 4% 0
Market Portfolio 10% 1

A) 5.4%
B) 6.0%
C) 8.2%
D) 9.4%
E) 11.2%

ANSWER

D