Stock Y has a beta of 1.25. The expected return on market is 11 percent and expected

Question:

Stock Y has a beta of 1.25. The expected return on market is 11 percent and expected return on the stock is 12.5 percent. What is the risk free rate?

Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...