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If you estimate the beta for stock 1 is 1.5, using CAPM we get the expected return for stock i is 0.42, the expected return

If you estimate the beta for stock 1 is 1.5, using CAPM we get the expected return for stock i is 0.42, the expected return of market portfolio is 0.3, what is the risk free rate?

A. 0.03

B. 0.04

C. 0.05

D. 0.06

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