A stock has an expected return of 12.5 percent and a beta of 1.16, and the expected return on the market is 11.5 percent. What must the risk-free rate be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Risk-free rate

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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A stock has an expected return of 12.5 percent and a beta of 1.16, and the expected
return on the market is 11.5 percent. What must the risk-free rate be? (Do not round
intermediate calculations and enter your answer as a percent rounded to 2 decimal
places, e.g., 32.16.)
Risk-free rate
%
Transcribed Image Text:A stock has an expected return of 12.5 percent and a beta of 1.16, and the expected return on the market is 11.5 percent. What must the risk-free rate be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Risk-free rate %
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