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A stock has an expected return of 18.4 percent and a beta of 1.90 , and the expected return on the market is 11.10 percent.

image text in transcribed A stock has an expected return of 18.4 percent and a beta of 1.90 , and the expected return on the market is 11.10 percent. What must the risk-free rate be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

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