What must be the risk free rate that satisfies these


A stock with a beta of 1.03 has an expected return of 13% and an alpha of -2.85% when the market expected return is 15.5%. What must be the risk free rate that satisfies these conditions?

3.84%

3.86%

3.83%

3.85%

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Financial Management: What must be the risk free rate that satisfies these
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