The common stock of abc homes has an expected return of 136


The common stock of ABC Homes has an expected return of 13.6% and a beta of 0.7. The expected return on the market portfolio is 16%. What is the risk-free rate?

a. 11.2% b. 14.5% c. 6.4% d. 8.0%

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Financial Management: The common stock of abc homes has an expected return of 136
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