Question: question 1. Banco de Sabadell SA has an expected return of 12.13 per cent, its beta is 1.07, and the expected return on the market

question 1.

Banco de Sabadell SA has an expected return of 12.13 per cent, its beta is 1.07, and the expected return on the market is 11.5 per cent. What must the risk-free rate be?

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