What is the risk-free rate


Problem:

Consider the CAPM. The expected return on the market is 17%. The expected return on a stock with a beta of 1.5 is 22%.

Required:

Question: What is the risk-free rate?

  • 5%
  • 15%
  • 7%
  • 11%

Note: Explain all steps comprehensively.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: What is the risk-free rate
Reference No:- TGS0884046

Expected delivery within 24 Hours