Question: Problem 11-16 Using CAPM [LO 4] A stock has an expected returm of 12.5 percent and a beta of 1.16, and the expected retun on

Problem 11-16 Using CAPM [LO 4] A stock has an expected returm of 12.5 percent and a beta of 1.16, and the expected retun on the market is 11.5 percent. What must the risk-ree rate be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16) Risk-free rate

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