calculation of risk-free rate of return
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Question
The expected return on HiLo stock is 13.69% while the expected return on the market is 11.5%. The beta of HiLo is 1.3. What is the risk-free rate of return?
a. 2.8%
b. 3.1%
c. 3.7%
d. 4.2%
e. 4.5%
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