Using the capm-calculate the risk-free rate

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Reference no: EM131853672

Suppose you are given the following information:

Expected return on the stock = 13.5%

Beta = 0.75

Market risk premium = 10%

Using the CAPM, calculate the risk-free rate. (Enter percentages as decimals and round to 4 decimals)

Reference no: EM131853672

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