Question: P13-16 Using CAPM [LO4] A stock has an expected return of 15 percent, its beta is 1.3, and the expected return on the market is

P13-16 Using CAPM [LO4]

A stock has an expected return of 15 percent, its beta is 1.3, and the expected return on the market is 13 percent. What must the risk-free rate be? (Do not round your intermediate calculations.)

a.6.65%

b.-1.90%

c.6.59%

d.6.33%

e.6.02%

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