Question: P13-16 Using CAPM (LO4] A stock has an expected return of 13 percent, its beta is 1.35, and the expected return on the market is

P13-16 Using CAPM (LO4] A stock has an expected return of

P13-16 Using CAPM (LO4] A stock has an expected return of 13 percent, its beta is 1.35, and the expected return on the market is 11 percent. What must the risk-free rate be? (Do not round your intermediate calculations.)

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