and an expected rate of return of 12.7%. What is the risk-free rate? Question 41 3 pts Cache Creek Manufacturing Company is expected to pay a dividend of $4.20 in the upcoming year. Dividends are expected to grow at the rate of 6% per year. The risk-free rate of return is 4%, and the expected return on the market portfolio is 10.5%. Investors use the CAPM to compute the market capitalization rate on the stock and use the constant-growth DDM to determine the intrinsic value of the stock. The stock is trading in the market today at $69. Using the constant:growth DDM and the CAPM, the beta of the stock is