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Suppose you observe the following situation: Security Beta Expected Return Sanders 1.2 21% Janicek 1.6 20.62 What must the percentage risk-free rate be if they
Suppose you observe the following situation:
Security | Beta | Expected Return |
Sanders | 1.2 | 21% |
Janicek | 1.6 | 20.62 |
What must the percentage risk-free rate be if they are correctly priced?
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