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Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | Apr 2017 |
| Last Sign in: | 419 Weeks Ago |
| Questions Answered: | 3232 |
| Tutorials Posted: | 3232 |
MBA,MCS,M.phil
Devry University
Jan-2008 - Jan-2011
MBA,MCS,M.Phil
Devry University
Feb-2000 - Jan-2004
Regional Manager
Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008
Stock X has a beta of 1.6 and an expected return of 19 percent. Stock Y has a beta of 1.2 and an expected return of 15.5 percent. What is the risk-free rate if these securities both plot on the security market line? A. 5.0 percent B. 4.5 percent C. 4.2 percent D. 4.0 percent E. 4.8 percent I know the answer is 5%, but i do not understand how to solve for it? Could you show me how to set it up the equation, my book does not explain it very well.
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