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Stock A has an expected return of 12% and a beta of 1.2. Stock B has an expected return of 9% and a beta of

Stock A has an expected return of 12% and a beta of 1.2. Stock B has an expected return of 9% and a beta of 0.8. Both stocks have the same reward-to-risk ratio. What is the risk-free rate? (Please explain the calculation.) a. 3.0% b. 4.0% c. 4.5% d. 2.5% e. 3.5%

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