A stock has an expected return of 15.10 percent and a beta of 1.30.What is the risk-free rate if the market rate is 13.1 percent?
A) 6.43 percent
B) 6.92 percent
C) 7.01 percent
D) 7.30 percent
E) 7.90 percent

Name: A stock has an expected return of 15.10 percent and a beta of 1.30.What is the risk-free rate if the market rate is 13.1 percent? A) 6.43 percent B) 6.92 percent C) 7.01 percent D) 7.30 percent E) 7.90 percent
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Question

Quizplus · Accepted Answer

15.10 = r_f + 1.30 (13.1 − r_f); r_f = 6.43 percent

A Stock Has an Expected Return of 15