Assume that Expected return of Growing Share in David's portfolio is 12%, the risk premium on the

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Question:

Assume that Expected return of Growing Share in David's portfolio is 12%, the risk premium on the stocks of the same industry is 5.6%, the beta of this share is 1.2 and the inflation rate was 1.2 %. Calculate risk free rate which is used to calculate expected return of this share, using Capital Asset Pricing Model