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What was the risk-free rate of return

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Question - ABC stocks have expected returned 11.2%. The risk premium on these stocks was 4.8% and the inflation rate was 3.7%. The stock has the same risk as market risk. What was the risk-free rate of return?

a. 2.7%

b. 6.4%

c. 7.5%

d. 8.5%

Reference no: EM132535406

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