Question: The expected return on Justus, Inc. stock is 15.63% while the expected return on the market is 12.4%. The beta of Justus's stock is 1.48.

The expected return on Justus, Inc. stock is 15.63% while the expected return on the market is 12.4%. The beta of Justus's stock is 1.48. What is the risk-free rate of return?

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