Question: There is a 3 5 % probability that a particular stock will earn a 1 6 % return and a 6 5 % probability that

There is a 35% probability that a particular stock will earn a 16% return and a 65% probability that it will earn 10%. What is the risk-free rate if the risk premium on the stock is 7.5%?
Question 31 options:
A)0.042
B)0.046
C)0.052
D)0.054

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