A stock has an expected return of 12 percent its beta is


A stock has an expected return of 12 percent, its beta is 1.35, and the expected return on the market is 10 percent. What must the risk-free rate be? (Do not round your intermediate calculations.)

A) 4.50%

B) 4.29%

C)4.07%

D)4.46%

E)-1.50%

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Financial Management: A stock has an expected return of 12 percent its beta is
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