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Assume AKKL Corp.s stock has the expected return of 13.86%. AKKL Corp.s beta is 1.42, and the current expected return of the market is 10.76%.

Assume AKKL Corp.s stock has the expected return of 13.86%. AKKL Corp.s beta is 1.42, and the current expected return of the market is 10.76%. What must the risk-free rate be according to the CAPM theory?

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