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A stock has an expected return of 17 percent, its beta is 1.35, and the expected return on the market is 13 percent. What must

A stock has an expected return of 17 percent, its beta is 1.35, and the expected return on the market is 13 percent. What must the risk-free rate be? (Do not round your intermediate calculations.)

A.) 1.63%

B.) -0.55%

C.) 1.57%

D.) 1.65%

E.) 1.49%

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