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What is the expected risk-free rate of return if Asset X, with a beta of 1.2, has an expected return of 17 percent, and the

What is the expected risk-free rate of return if Asset X, with a beta of 1.2, has an expected return of 17 percent, and the expected market return is 15 percent?

A.

6%

B.

5%

C.

4%

D.

4.5%

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