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Stock A has an expected return of 13.7 percent and a beta of 1.1. Stock B has an expected return of 6.4 percent and a

Stock A has an expected return of 13.7 percent and a beta of 1.1. Stock B has an expected return of 6.4 percent and a beta of 0.4. Both stocks have the same reward-to-risk ratio. What is the risk-free rate? That is, what would the risk-free rate have to be for the two stocks to be correctly priced?

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