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Assume ABC Corp.s stock has the expected return of 17.53%. ABC Corp.s beta is 1.63, and the current expected return of the market is 12.21%.

Assume ABC Corp.s stock has the expected return of 17.53%. ABC Corp.s beta is 1.63, and the current expected return of the market is 12.21%. What must the risk-free rate be according to the CAPM theory?

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