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Stock X has a beta of 0.9 and an expected return of 12%. Stock Y has a beta of 1.4 and an expected return of 16%. What is the risk-free rate if these securities both plot on the security market line?

a. 4.8%

b. 4.6%

c. 4.2%

d. 4.4%

e. 5.0%

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M91547907

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