Question: The expected return on a stock is 12.08 percent while the expected return on the market is 10.5 percent. The beta of the stock is

  1. The expected return on a stock is 12.08 percent while the expected return on the market is 10.5 percent. The beta of the stock is 1.25. What is the risk-free rate of return?

    1.62%

    4.18%

    2.69%

    4.02%

    3.58%

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