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The risk premium is 3 . 1 % . A stock that is currently priced at $ 9 0 is expected to be priced at

The risk premium is 3.1%. A stock that is currently priced at $90 is expected to be priced at $97 and to pay a dividend of $2 one year from now.
What is the risk free rate? (Express your answer as a decimal. Round to the nearest ten-thousandth)

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