Question: D13 X fx A B 1 E A stock has an expected return of 10.45 percent, its beta is .85, 2 and the expected

D13 X fx A B 1 E A stock has an expected

D13 X fx A B 1 E A stock has an expected return of 10.45 percent, its beta is .85, 2 and the expected return on the market is 11.8 percent. What must the risk-free rate be? 3 4 Input area: 5 6 Stock E(R) 10.45% 7 Stock beta 0.85 8 Market E(R) 11.80% 9 LL F 10 (Use cells A6 to B8 from the given information to complete this question.) 11 12 Output area: 13 14 Risk-free 15 16 G

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