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Suppose a company in the tobacco industry has an expected return of 12.9 percent and a beta of 1.25. The expected return on the market
Suppose a company in the tobacco industry has an expected return of 12.9 percent and a beta of 1.25. The expected return on the market is 11.7 percent. What is the risk-free rate? Record your answer as a whole number percentage rounded to two decimal places (e.g. 1.23). Do not include a percentage sign (e.g. %) in your
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