Question: answer the blank A stock has an expected return of 10.45 percent, its beta is .85, and the expected return on the market is 11.8

answer the blank

answer the blank A stock has an expected return of 10.45 percent,

A stock has an expected return of 10.45 percent, its beta is .85, and the expected return on the market is 11.8 percent. What must the risk-free rate be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Risk-free rate 1.10 %

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