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A stock has an expected return of 18 percent, its beta is 1.4, and the expected return on the market is 14 percent. What must

A stock has an expected return of 18 percent, its beta is 1.4, and the expected return on the market is 14 percent. What must the risk-free rate be? (Do not round your intermediate calculations.)

4.16%

-1.60%

4.00%

3.80%

4.20%

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