Question 12 1 Point 12.6 The expected return on JK stock is 11 percent while the expected return on the market is 9.1 percent. The stock's beta is 1.4. What is the risk-free rate of return? Only Enter the Final Answer in Decimals. Pick one: 0.0435 0.0211 0.075 0.0875 Add your answer Do you have additional content? You can add text, images, and files that support your answers. 1 Point Question 7 12.1 The common stock of Manchester & Moore is expected to earn 10 percent in a boom economy, 5 percent in a normal economy, and lose 10 percent in a recession. The probability of a recession is 30 percent while the probability of a boom economy is 45 percent. What is the expected rate of return on this stock? Hint: First find the probability of normal economy. Only Enter the Final Answer in Decimals. Pick one 0.0275 -0.0275 0.2145 0.4455 Add your