Polly Khan is trying to calculate the risk-free rate given the following information:  The current market rate of interest is 10%.  Investors have been requiring a 16% annual return on Builtrite's stock which has a beta of 2.0.  What is the current risk-free rate?

Answer rating: 100% (QA)

Solution Beta 2 Required rate of return 16 Market rate of r... View the full answer