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Problem:

Consider the CAPM. The expected return on the market is 17%. The expected return on a stock with a beta of 1.5 is 22%.

Required:

Question: What is the risk-free rate?

  • 5%
  • 15%
  • 7%
  • 11%

Note: Explain all steps comprehensively.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91162475

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