Expected return-what must the risk-free rate be

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Reference no: EM13942936

A stock has an expected return of 15 percent, its beta is 1.35, and the expected return on the market is 12 percent. What must the risk-free rate be? (Do not round your intermediate calculations.)

-1.20%

3.57%

3.60%

3.43%

3.26%

Reference no: EM13942936

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