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Assume the Capital Asset Pricing Model is true to answer the following question. A stock has an expected return of 13.5 percent; its beta is

Assume the Capital Asset Pricing Model is true to answer the following question. A stock has an expected return of 13.5 percent; its beta is 1.2, and the expected return on the market portfolio is 12.0 percent. What must the risk-free rate be?

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