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21. A stock has an expected return of 22 percent (according to the CAPM theory), and a beta of 1:6. The expected return on the
21. A stock has an expected return of 22 percent (according to the CAPM theory), and a beta of 1:6. The expected return on the market is 16 percent. What must the risk-free rate be?
(a) 4%
(b) 5%
(c) 6%
(d) 7%
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