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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 12%. 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 12%. Investors have been requiring a 16.5% annual return on Builtrites stock which has a beta of 1.5. What is the current risk-free rate?

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2%

3%

4%

5%

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