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There is a 30 percent probability that a particular stock will earn a 17 percent return and a 70 percent probability that it will earn
There is a 30 percent probability that a particular stock will earn a 17 percent return and a 70 percent probability that it will earn 11 percent. What is the risk-free rate if the risk premium on the stock is 8.60 percent?
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4.20 percent
4.80 percent
5.20 percent
5.40 percent
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