A stock has an expected return of 11 percent, its beta is 1.60, and the expected return

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A stock has an expected return of 11 percent, its beta is 1.60, and the expected return on the market is 9 percent. What must the risk-free rate be? (Round your answer to 2 decimal places. (e.g., 32.16))

Risk-free rate

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Corporate Finance Core Principles And Applications

ISBN: 9781260571127

6th Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

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Posted Date: Mar 05, 2024 02:28 AM

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A stock has an expected return of 11 percent, its beta is 1.60, and the expected return

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We can use the Capital Asset Pricing Model CAPM to calculate the ri... View the full answer

Corporate Finance Core Principles And Applications

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