Question: Problem 13-16 Using CAPM [LO4] A stock has an expected return of 15 percent, its beta is 1.70, and the expected return on the market

Problem 13-16 Using CAPM [LO4]

A stock has an expected return of 15 percent, its beta is 1.70, and the expected return on the market is 10.8 percent. What must the risk-free rate be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Risk-free rate

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