What is the risk-less rate

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A stock with a beta of 1.5 has an expected rate of return of 12%. The market-premium (market rate of return - risk-less rate) of the market is 6.2%. What is the risk-less rate? Assume CAPM is true.

Please express your answer as a percentage. For example, if your answer is 7.32%, then enter 7.32 in the answer box.

Reference no: EM133121112

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