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Stock A has an expected return of 14.4 percent and a beta of 1.21. Stock B has an expected return of 12.87 percent and a
Stock A has an expected return of 14.4 percent and a beta of 1.21. Stock B has an expected return of 12.87 percent and a beta of 1.06. Both stocks have the same reward-to-risk ratio. What is the risk-free rate?
2.06 percent
2.28 percent
1.79 percent
3.35 percent
1.92 percent
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