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A stock has an expected return of 13 percent, its beta is 1.25, and the expected return on the market is 11 percent. What must
A stock has an expected return of 13 percent, its beta is 1.25, and the expected return on the market is 11 percent. What must the risk-free rate be?
a) 2.85%
b) 3.00%
c)-0.75%
d)3.12%
e)3.15%
show how to get risk-free rate
Thanks
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