A Stock Has an Expected Return of 14

question 34

Multiple Choice

A stock has an expected return of 14.59 percent and a beta of 1.35.What is the risk-free rate if the market rate is 12.7 percent?

• A)6.48 percent
• B)6.92 percent
• C)7.01 percent
• D)7.30 percent
• E)7.90 percent

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