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Polly Khan is trying to calculate the risk-free rate given the following information: The current market rate of interest is 8%. Investors have been requiring

Polly Khan is trying to calculate the risk-free rate given the following information: The current market rate of interest is 8%. Investors have been requiring a 10% annual return on Builtrites stock which has a beta of 1.5. What is the current risk-free rate?

A) 4%

B) 5%

C) 3%

D) 2%

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