Question: Assuming the expected return on a broadly-based UK share market index is 8% and a UK asset with a beta of 1.5 has an expected

Assuming the expected return on a broadly-based UK share market index is 8% and a UK asset with a beta of 1.5 has an expected return of 10.5%, what is the risk-free rate in the UK? a. 8% b. 3% C. 7% d. 5%

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