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A interesting stock has an expected return of 13%, its beta is 1.4, and the expected return on the market is 10% . What must

A interesting stock has an expected return of 13%, its beta is 1.4, and the expected return on the market is 10% . What must the risk-free rate be? (Do not round)

Multiple Choice

A. -1.00%

B. 2.60%

C. 2.37%

D. 2.62%

E. 2.50%

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