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Suppose you observe the following situation: Security Beta Expected Return Pepsi Co. 1.10 .1220 Coca Co. .82 .0950 Assume these securities are correctly priced. What

Suppose you observe the following situation: Security Beta Expected Return Pepsi Co. 1.10 .1220 Coca Co. .82 .0950 Assume these securities are correctly priced. What should be the risk-free rate? a. 1.20% O b. 1.27% O c. 1.48% O d. 1.59% O e. 1.77%

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