There is a 35% probability that a particular stock will earn a 16% return and a 65% probability that it will earn 10%. What is the risk-free rate if the risk premium on the stock is 7.5%?
A)4.20%
B)4.60%
C)5.20%
D)5.40%
E)5.80%

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The Answer of There is a 35% probability that a particular stock will earn a 16% return and a 65% probability that it will earn 10%. What is the risk-free rate if the risk premium on the stock is 7.5%?
A)4.20%
B)4.60%
C)5.20%
D)5.40%
E)5.80%

There Is a 35% Probability That a Particular Stock Will