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A stock has an expected return of 13 percent, its beta is 1.45, and the expected return on the market is 10 percent. What must

A stock has an expected return of 13 percent, its beta is 1.45, and the expected return on the market is 10 percent. What must the risk-free rate be? (Do not round your intermediate calculations.)

Multiple Choice

3.33%

3.17%

-1.50%

3.47%

3.50%

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