1 2 A B C D E A stock has an expected return of 10.45 percent, its beta is .85, and the expected return on the market is 11.8 percent. What must the risk-free rate be? 3 4 Input area: 5 6 Stock E(R) 7 Stock beta 8 Market E(R) 9 10.45% 0.85 11.80% 10 (Use cells A6 to B8 from the given information to complete this question.) 11 12 Output area: 13 14 Risk-free 15 16 G H