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there is a 35 percent probability that a particular stock will earn a 16 percent return and a 65 percent probability that it will earn

there is a 35 percent probability that a particular stock will earn a 16 percent return and a 65 percent probability that it will earn 10 percent. what is the risk free rate if the risk premium on the stock is 7.5 percent

a. 5.20 percent b. 4.20 percent c. 5.40 percent d. 5.80 percent e. 4.60 percent

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