Question: P13-16 Using CAPM [LO4] A stock has an expected return of 14 percent, its beta is 1.45, and the expected return on the market is

P13-16 Using CAPM [LO4]

A stock has an expected return of 14 percent, its beta is 1.45, and the expected return on the market is 11 percent. What must the risk-free rate be? (Do not round your intermediate calculations.)

which of the following is the answer

4.55%

4.12%

-1.95%

4.51%

4.33%

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