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The stock for Rentech has an expected return of 12.0% and a beta of 1.4. The expected return on the market is 9.0%. If the

The stock for Rentech has an expected return of 12.0% and a beta of 1.4. The expected return on the market is 9.0%. If the market is in equilibrium, what is the risk free rate?

a.

1.2

b.

1.7

c.

1.0

d.

1.5

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