A stock has an expected return of 13.9 percent
Question
A stock has an expected return of 13.9 percent, a beta of 1.80, and the expected return on the market is 10.40
percent. What must the risk-free rate be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the “%” sign in your response.)
| Risk-free rate | % |