What must risk-free rate be

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A stock has an expected return of 12.2 percent and a beta of 1.18, and the expected return on the market is 11.2 percent.

What must the risk-free rate be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Risk-free rate             %

Reference no: EM131932542

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