Question: 31 Using the CAPM. A stock has an expected return of 14%, and its beta is 1.85. The expected return on the market is 12%.

31 Using the CAPM. A stock has an expected return of 14%, and its beta is 1.85. The expected return on the market is 12%. What must be the risk free rate?

9.65%

10.55%

15.79%

22.26%

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