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The return on the market portfolio is currently 12%. Mobile Phone Corporation stockholders require a rate of return 30% and the stock has a beta

The return on the market portfolio is currently 12%. Mobile Phone Corporation stockholders require a rate of return 30% and the stock has a beta of 3.2. According to CAPM, determine the risk - free rate.

a. 3.82%

b. 9.80%

c. 6.50%

d. 4.64%

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