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Stock A has an expected return of 18 percent and a beta of 1.7. Stock B has an expected return of 9 percent and a
Stock A has an expected return of 18 percent and a beta of 1.7. Stock B has an expected return of 9 percent and a beta of 0.8. Both stocks have the same reward-to-risk ratio. What is the risk-free rate?
4.50 percent
1.00 percent
3.20 percent
2.26 percent
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