Stock J has a beta of 1.47 and an expected return of 15.8 percent.Stock K has a beta of 1.05 and an expected return of 11.9 percent.What is the risk-free rate if these securities both plot on the security market line?
A) 2.15 percent
B) 3.34 percent
C) 3.88 percent
D) 4.41 percent
E) 4.68 percent
Correct Answer:
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