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Fidalgo Island Corp. has a beta of 2. The stock is currently selling for $12 a share. The overall stock market return is 10 percent

Fidalgo Island Corp. has a beta of 2. The stock is currently selling for $12 a share. The overall stock market return is 10 percent with a market risk premium of 8 percent. What is the current risk-free rate?

18%

10%

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