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A stock has an expected return of 10 percent, its beta is 1.25, and the expected return on the market is 9 percent. What must

A stock has an expected return of 10 percent, its beta is 1.25, and the expected return on the market is 9 percent. What must the risk-free rate be?

Multiple Choice:

4.75%

5.20%

-1.25%

5.25%

5.00%

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