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A stock has a beta of 1.2 and an expected return of 12%. The market is expected to yield 11%. What is the risk-free rate?

A stock has a beta of 1.2 and an expected return of 12%. The market is expected to yield 11%. What is the risk-free rate?
a.
5.00%
b.
6.00%
c.
1.20%
d.
3.5%
e.
0%

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