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A A stock has an expected return of 10.45 percent, its beta is .85, and the expected return on the market is 11.8 percent. What must the risk-free rate be? Input area: Stock E(R) Stock beta Market E(R) 10.45% 0.85 11.80% (Use cells A6 to B8 from the given information to complete this question.) Output area: Risk-free G I

A A stock has an expected return of 10.45 percent, its beta is .85, and the expected return on the market is 11.8 percent. What must the risk-free rate be? Input area: Stock E(R) Stock beta Market E(R) 10.45% 0.85 11.80% (Use cells A6 to B8 from the given information to complete this question.) Output area: Risk-free G I

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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A A stock has an expected return of 10.45 percent, its beta is .85, and the expected return on the market is 11.8 percent. What must the risk-free rate be? Input area: Stock E(R) Stock beta Market E(R) 10.45% 0.85 11.80% (Use cells A6 to B8 from the given information to complete this question.) Output area: Risk-free G I
Transcribed Image Text:A A stock has an expected return of 10.45 percent, its beta is .85, and the expected return on the market is 11.8 percent. What must the risk-free rate be? Input area: Stock E(R) Stock beta Market E(R) 10.45% 0.85 11.80% (Use cells A6 to B8 from the given information to complete this question.) Output area: Risk-free G I
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