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The common stock of Josep and Josep has an expected return of 11.4 percent and a beta of 1.1. The expected return on the market

The common stock of Josep and Josep has an expected return of 11.4 percent and a beta of 1.1. The expected return on the market is 10.6 percent. What is the risk-free rate?

A.

2.6 percent

B.

2.9 percent

C.

3.8 percent

D.

4.1 percent

E.

4.4 percent

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