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CH13;Q9 Opening up the morning newspaper (yes, they still exist!), you find that stock A has an expected return of 17.50% and a beta of

CH13;Q9

Opening up the morning newspaper (yes, they still exist!), you find that stock A has an expected return of 17.50% and a beta of 2.80. Down the page, you find out that stock B has an expected return of 4.00% and a beta of 1.00. According to this information, what is the expected rate of return (in percentage points) on a risk-free asset?

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