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Stock A has an expected return of 16 percent and a beta of 1.40. Stock B has an expected return of 11 percent and a
Stock A has an expected return of 16 percent and a beta of 1.40. Stock B has an expected return of 11 percent and a beta of 0.84. Both stocks have the same reward-to-risk ratio. What is the risk-free rate?
2.13 percent | ||
1.27 percent | ||
3.50 percent | ||
4.26 percent |
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