Question: Can you please further explain the correct answer (Answer C) 28) Consider the CAPM. The expected return on the market is 15%. The expected return

Can you please further explain the correct answer (Answer C)

28) Consider the CAPM. The expected return on the market is 15%. The expected return on a stock with a beta of 1.2 is 17%. What is the risk-free rate? (HES NOT GIVING FORMULA) A) 2% B) 14% C) 5% D) 6%

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